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

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.

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.

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

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

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

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

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: 1993 Shareholders: AfDB, 34 African countries Capital: $ 1.4 billion

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 2009. 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

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

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

Contact Representative Office in Dubai Moriyuki AIDA (Mr.), Chief Representative e-mail: m-aida@jbic.go.jp Ryutaro NISHIZAKI (Mr.), Representative e-mail: r-nishizaki@jbic.go.jp Africa Office, Europe, Middle East and Africa Finance Department TEL: 81-3-5218-3936 FAX: 81-3-5218-3964

Appendixes

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

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.

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.

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.

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.

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.

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

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