Introducing JBIC Finance Introducing JBIC Finance in Africain Africa

Afreximbank 2010 Seminar on Fundmantals of Structured Trade Finance

2nd December 2010

Mr. Moriyuki Aida

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The mission of JBIC

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.

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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.

TICAD IV and JBIC

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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)

ＪＢＩＣ

Private sector financing

Guarantee

JBIC’s focus on Africa

Loan Equity

InvestmentPrivate

Money

Flow

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JBIC loans to Africa: Major Projects since 2007signing 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 South Africa Untied Loan for DBSALoan 120 mil USD / Guarantee 80 mil USD

Jun 7, 2007 South AfricaUntied 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 UgandaTwo Step Loan for Uganda Development Bank （ Organic Cotton Business ） 2.5 mil USD

Aug 22, 2007 MadagascarProject Finance & Political Risk Guarantee for Ambatovy Nickel Project

Loan 490 mil USD

Jul 9, 2008 South AfricaUntied Loan for Eskom （ Power Transmission & Distribution ）

Loan 4.5 bil JPY / (53 mil USD)G’tee 3.0 bil JPY (35 mil USD)

Aug 15, 2008 Madagascar Overseas Investment Loan for Ambatovy Nickel Project

Loan 400 mil USD

Sep 25, 2008 EgyptOverseas Investment Loan for Natural gas related project

Loan 270 mil USD

Mar 26, 2009 South Africa 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 South Africa Untied Loan for Standard Bank 150 mil USD

Aug 9, 2010 Egypt Buyer’s Credit for Energy Refinery Project (Project-Finance Based)

Loan 540 mil USD

Sep 2, 2010 EgyptBuyer’s Credit for the National Authority for Tunnels (Metro Construction)

Loan 7.9 bil JPY (USD 95 mil)

5Exchange rate: 1USD = 83.5 JPY

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JBIC Credit Lines to regional banks

West African Development Bank (WADB)

Development Bank of Southern Africa (DBSA)

The Eastern and Southern African Trade and Development Bank (PTA Bank)

East African Development Bank(EADB)

1995 1st Credit Line2007 2nd Credit Line

1988 1st Credit Line1992 2nd Credit Line

2006 1st Credit Line

1989 1st Credit Line

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JBIC-AfDB MOUJBIC-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: ① energy and natural resources development and related infrastructure projects; ② renewable energy development and related infrastructure projects; 　③ infrastructure projects which improve the business environment of the private

sector;④ Other projects which contribute to the private sector development of the African

countries;⑤ Trade facilitation programs; and ⑥ Liquidity support for private sector in mitigating the impact of the global

financial crisis

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JBIC-Afreximbank MOUJBIC-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

9 * A facility is not a fund or account, but a program with specific procedures for managing operations.

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.

contribution

Advisory Service

African Countries

Natural ResourceDevelopment

Projects

Power Projects

・・・

InfrastructureProjects

ManufacturingProjects

Japanese Banks, etc

Equity Investment

LoanGuarantee

JapaneseGovernment

ＴＣＸ

Local Currency Loan

Local Currency Loan

Currency Swap

Currency Swap

EquityInvestment

FA

I

JBIC

JapaneseBanks

The JBIC Facility for African Investment

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Untied Loan under GREEN

African Government/Agency

African Government/Agency

J B I CJ B I C

Environmental conservation

projectsThis mission is also in line with

Hatoyama Initiatives

Loans

＊ since April 2010

GG Global action for

RR Reconciling

E E Economic Growth and

EN EN Environmental Conservation

Eligible ProjectsSpecific projects and programs supported by GREEN need to aim at conserving global environment such as mitigating global warming, and inprinciple to meet the following two requirements:1. The project has a favorable impact on the conservation of the global environment, such as significantly reducing GHG emissions; and2. 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).

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The Currency Exchange Fund N.V. (TCX)

Current Investors

Equity

Designate

Currency Swaps

Borrowers （ Local Projects ）

Equity Investors

JBIC

Cofinancing BanksEquity

Currency SwapsLocal Currency Loans

JBIC Loan

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.

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•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

Contact

AppendixesAppendixes

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Profile of JBICProfile 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, 2010USD1=JPY93.04

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Products: Export Loans (B/C, B/L)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.

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Products: Import LoansProducts: 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.

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Products: Overseas Investment LoansProducts: 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.

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Products: Untied LoansProducts: 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.

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Products: Equity Participation (1)Products: Equity Participation (1)

JBIC supports overseas business operations by participating in equity investments, in such cases if:

1. Japanese firms make equity investment in an overseas project; or

2. 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.

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Products: Equity Participation (2)Products: Equity Participation (2)

JBIC’s equity investment can be a form of fund investment if:

1. Japanese firms participate in an investment fund (and perform such major role as general partner in their management and investment decisions); or

2. Japanese firms form a consortium and participate in an international fund

Thank you!!