0. Introducing JBIC Finance in Africa
Afreximbank 2010 Seminar on Fundmantals
of Structured Trade Finance
Mr. Moriyuki Aida
2nd December 2010

1. The mission of JBIC competitiveness of Japanese industries
JBIC is tasked with the following four missions.
Maintaining and improving
the international
competitiveness of
Japanese industries
Promoting overseas development
and acquisition of strategically
important natural resources
to Japan
Responding to disruptions
in financial order
in the international economy
Promoting overseas projects
for conserving global
environment, such as
mitigating global warming
JBIC’s activity under this mission added in April 2010 is called “GREEN”, Global Action for Reconciling Economic growth and Environment conservation.

2. TICAD IV and JBIC US$2.5 billion Commitment by JBIC at TICAD IV
At TICAD IV in May 2008, the Japanese Government announced JBIC's financial support (in loans, equity investments and guarantees) for Africa in the total amount of US$2.5 billion over the next five years. Since then, through JBIC, it has made an overall commitment equivalent to about US$ 2 billion of financial commitments for infrastructure development and natural resource related projects that would support Japanese business activities and economic growth in African countries.

3. JBIC’s focus on Africa ＪＢＩＣ Private sector financing
Natural Resource Development
(supporting exploitation and off-take of oil, gas, rare metals, etc. )
Power & Other 　　　Infrastructure Projects
(supporting IPP projects with Japanese firm participation)　　　　　　　　　　　　
Trade Facilitation
(two-step loans via regional/ local bank, supporting export from Japan)
Manufacturing Investment
(supporting overseas investments of Japanese manufacturing firms)
Equity
Investment
Loan
Private
Money
Flow
Guarantee
ＪＢＩＣ
Private sector financing

4. JBIC loans to Africa: Major Projects since 2007
signing date
country　
project name
Amount
Feb 9, 2007
－ 　
Export Credit Line for PTA Bank
1,500 mil JPY (18 mil USD)
Feb 14, 2007
South Africa
Export Credit Line for Eskom
30 bil JPY (360 mil USD)
Jun 6, 2007
Untied Loan for DBSA
Loan 120 mil USD /
Guarantee 80 mil USD
Jun 7, 2007
Untied Loan for Eskom （Power Transmission & Distribution）
Loan 10.2 bil JPY / (122 mil USD)
G’tee 6.8 bil JPY (81 mil USD)
Jul 17, 2007
Uganda
Two Step Loan for Uganda Development Bank （Organic Cotton Business）
2.5 mil USD
Aug 22, 2007
Madagascar
Project Finance & Political Risk Guarantee for Ambatovy Nickel Project
Loan 490 mil USD
Jul 9, 2008
Loan 4.5 bil JPY / (53 mil USD)
G’tee 3.0 bil JPY (35 mil USD)
Aug 15, 2008
Overseas Investment Loan for Ambatovy Nickel Project
Loan 400 mil USD
Sep 25, 2008
Egypt
Overseas Investment Loan for Natural gas related project
Loan 270 mil USD
Mar 26, 2009
Untied Loan for Transnet （Port Expansion）
Loan 2.1 bil JPY (251 mil USD) /
G’tee 1.4 bil JPY (167 mil USD)
Oct 5, 2009
Untied Loan for Standard Bank
150 mil USD
Aug 9, 2010
Buyer’s Credit for Energy Refinery Project (Project-Finance Based)
Loan 540 mil USD
Sep 2, 2010
Buyer’s Credit for the National Authority for Tunnels (Metro Construction)
Loan 7.9 bil JPY (USD 95 mil) 4
Exchange rate: 1USD = 83.5 JPY

5. JBIC Credit Lines to regional banks
The Eastern and
Southern African
Trade and Development
Bank (PTA　Bank)
West African
Development Bank
(WADB)
2006 1st Credit Line
1988　1st Credit Line
1992　2nd Credit Line
East African
Development Bank
(EADB)
Development Bank
of Southern Africa
(DBSA)
1989 1st Credit Line
1995　1st Credit Line
2007　2nd Credit Line

6. JBIC-AfDB MOU Memorandum of Understanding between JBIC and AfDB
On May 14, 2009, JBIC signed a Memorandum of Understanding (MOU) with the African Development Bank (AfDB) during the Annual Meeting of AfDB held in Dakar, Senegal. The MOU aims to strengthen cooperation between the two banks in supporting economic development in Africa.
Under the MOU, AfDB and JBIC may consider cooperation either by co-financing and/or providing credit lines by JBIC to AfDB mainly intended for:
energy and natural resources development and related infrastructure projects;
renewable energy development and related infrastructure projects;　
infrastructure projects which improve the business environment of the private sector;
Other projects which contribute to the private sector development of the African countries;
Trade facilitation programs; and
Liquidity support for private sector in mitigating the impact of the global financial crisis

7. JBIC-Afreximbank MOU
Memorandum of Understanding between JBIC and Afreximbank
On May 27, 2010, JBIC signed a Memorandum of Understanding (MOU) with the African Export-Import Bank (Afreximbank) during the Annual Meeting of the African Development Bank (AfDB) held in Abidjan, the Republic of Cote d'Ivoire.
Under the MOU, the two banks will collaborate in financing to promote projects in Africa with involvement by Japanese firms as well as trade between Japan and African countries.
cf. Afreximbank
Foundation:
Shareholders: AfDB, 34 African countries
Capital: $ 1.4 billion

8. Natural Resource Development
The JBIC Facility for African Investment
To foster Japanese private business operations in Africa, the JBIC Facility for African Investment (FAI)* was established in April Under the FAI, JBIC, in addition to its hard-currency direct lending, will make equity investments and guarantees for the loans of private banks, as well as providing local currency financing to projects in African countries.
JBIC
African Countries
Equity Investment
FAI
Guarantee
Loan
Japanese Banks, etc
Manufacturing
Projects
Natural Resource Development
Projects
Japanese Government
Local Currency Loan
Currency Swap
Power Projects
contribution
Equity Investment
ＴＣＸ
Infrastructure
Projects
Currency Swap
Japanese Banks
・・・
Local Currency Loan
Advisory Service
* A facility is not a fund or account, but a program with specific procedures for managing operations. 8

9. Untied Loan under GREEN
African Government/Agency
J B I C
Loans
G Global action for
R Reconciling
E Economic Growth and
EN Environmental Conservation
Environmental conservation projects
This mission is also in line with
Hatoyama Initiatives
Eligible Projects
Specific projects and programs supported by GREEN need to aim at conserving global environment such as mitigating global warming, and in
principle to meet the following two requirements:
The project has a favorable impact on the conservation of the global environment, such as significantly reducing GHG emissions; and
With regard to the impact on the conservation of global environment mentioned above, the project proponent measures the level of impact (Measurement), reports the result of this measurement (Reporting), and allows either JBIC or a JBIC-designated third party entity to verify the result (Verification).
＊since April 2010

10. The Currency Exchange Fund N.V. (TCX) Borrowers（Local Projects）
The Currency Exchange Fund (TCX)
JBIC Provided Equity in TCX in February 2010, which offers Currency and Interest Rate Derivatives for Local Currencies of African and Other Emerging Countries. JBIC is currently in preparation for future Local Currency based transactions using TCX capacity.
The Currency Exchange Fund N.V. (TCX)
Current Investors
Equity
Designate
Currency Swaps
Borrowers（Local Projects）
Equity Investors
JBIC
Cofinancing Banks
Local Currency Loans
JBIC Loan

11. Contact Representative Office in Dubai
Moriyuki AIDA (Mr.), Chief Representative
Ryutaro NISHIZAKI (Mr.), Representative
Africa Office,
Europe, Middle East and Africa Finance Department
TEL: FAX:

12. Appendixes

13. Profile of JBIC
Name: Japan Bank for International Cooperation (JBIC) the international wing of Japan Finance Corporation (JFC), a policy-based financial institution wholly owned by the Japanese government
Capital: JPY 1,055.5 billion※ (approx. USD 11.3 billion)
Outstanding Loans and Other Financing: JPY 8,818.1 billion※ (approx. USD 94.8 billion) 　
Outstanding Guarantees: JPY 1,977.1 billion※ (approx. USD 21.3 billion)
※ as of March 31, 2010
USD1=JPY93.04

14. Products: Export Loans (B/C, B/L)
A buyer's credit (B/C) and a bank-to-bank loan (B/L) are direct loans respectively provided to a foreign importer and a foreign financial institution for financing the import of Japanese machinery and equipment or the utilization of Japanese technical services.

15. Products: Import Loans
JBIC supports the import of strategically important goods by Japanese firms, including oil, natural gas (such as LNG) and iron ore. The guarantee facility is available for the import of goods other than natural resources.

16. Products: Overseas Investment Loans
JBIC provides overseas investment loans to meet long-term financing needs of Japanese firms including their overseas subsidiaries for their international business development, such as establishing / expanding production bases and developing natural resources overseas.

17. Products: Untied Loans
Untied loans are loans not conditional on procurement of equipment and materials from Japan. Specific projects and programs in developing countries can be supported by untied loans, if they are (not limited to):
(1) Sustaining and expanding trade and direct investment from Japan;
(2) Helping secure access to stable supplies of energy and mineral resources;
(3) Promoting Japanese business activities;
(4) Exerting a favorable impact on the preservation of global environment; and
(5) Maintaining international financial order.

18. Products: Equity Participation (1)
JBIC supports overseas business operations by participating in equity investments, in such cases if:
Japanese firms make equity investment in an overseas project; or
Japanese firms acquire equity interests in a foreign firm to form business alliance
JBIC will support overseas projects by drawing on the knowledge it has acquired on developing economies and investment projects.

19. Products: Equity Participation (2)
JBIC’s equity investment can be a form of fund investment if:
Japanese firms participate in an investment fund (and perform such major role as general partner in their management and investment decisions); or
Japanese firms form a consortium and participate in an international fund

20. Thank you!!