Overview of JBIC
The Japan Bank for International Cooperation (JBIC) is a Japanese public financial institution and export credit agency founded in 1999 through the merger of the Japan Export-Import Bank (JEXIM) and the Overseas Economic Cooperation Fund (OECF).
JBIC became the international wing of the Japan Finance Corporation (JFC) in 2008 before becoming independent again in 2012. JBIC is wholly owned by the Japanese government and reports to the Ministry of Finance.
Mission and Functions
JBIC’s mission is to promote economic ties between Japan and overseas countries. Its main functions include:
- Promoting overseas development of strategically important natural resources
- Supporting Japanese industry efforts to develop international business
- Responding to financial crises and disorder in the global economy
JBIC provides financing through:
- Export loans
- Import loans
- Overseas investment loans
- Untied loans
Key sectors supported include:
- Tobacco, spices, gold, etc.
- Finished goods
- Iron, steel, non-ferrous metals
JBIC is an important source of financing for Japanese exporters.
|Countries||Operates in 18 countries|
JBIC provides policy-based financing that complements private lenders in Japan. It plays a vital role supporting overseas economic activities and development for Japan.
History and Organizational Structure
JBIC was established in 1999 through the merger of two previous state-owned financial institutions:
- Japan Export-Import Bank (JEXIM)
- Overseas Economic Cooperation Fund (OECF)
In 2008, JBIC merged with other state lenders to become the international finance wing of the new Japan Finance Corporation (JFC). JBIC regained independence in 2012.
JBIC is organized into various departments including:
- Corporate Planning
- Corporate Finance
- Industry Finance
- Infrastructure Finance
- Environment Finance
- Equity Finance
It has overseas offices in major regions:
- Bangkok, Beijing, Hanoi, Jakarta, Manila, Mumbai, Singapore
- New York, Washington D.C
Europe, Middle East, Africa
- Paris, London, Frankfurt
JBIC is led by a Governor, Deputy Governors, and Executive Managing Directors.
The current leadership includes:
|Daisaku Hiraki||Deputy Governor|
|Tadashi Maeda||Deputy Governor|
JBIC operations are overseen by a Board of Directors with 15 members. Day-to-day operations are handled by the Executive Managing Directors.
JBIC maintains close ties with government ministries like Finance and Economy/Industry to coordinate Japan’s international economic policy.
Financial Products and Services
JBIC provides a range of financial products and services to support Japanese companies operating internationally as well as overseas infrastructure development.
- Export Loans – Support overseas sales of Japanese machinery, equipment, and services
- Import Loans – Finance imports of natural resources and other materials to Japan
- Overseas Investment Loans – Support Japanese FDI and establishment of overseas operations
- Untied Loans – General purpose loans not tied to Japanese procurements
- JBIC makes equity investments in overseas projects and companies to facilitate Japanese participation
- JBIC provides credit guarantees on loans from private financial institutions:
- Export loans
- Overseas investment loans
- Untied loans
- Advising Japanese companies on investing and doing business overseas
- Providing information on countries and markets
- Co-financing with private banks
- Syndicated loans
- Project finance
JBIC complements private financial institutions by enabling Japanese companies to mitigate risks and access financing for international business.
Impact and Results
JBIC plays a critical role in supporting the overseas expansion and competitiveness of Japanese industry. Some key impacts and results include:
Promoting Strategic Resources
- JBIC has financed oil and LNG projects around the world to secure energy resources for Japan
- It has provided over $10 billion in mining investment loans since 1999
- Japanese exports supported by JBIC reached over $500 billion from 1999-2012
- Key export sectors supported include infrastructure, automobiles, machinery, electronics, etc.
Overseas Infrastructure Development
- JBIC has financed major transportation projects like subways, airports, seaports
- It supported construction of over $100 billion in power plants since 1999
- Other key sectors include water, telecoms, etc.
Responding to Crises
- JBIC launched emergency lending after the 2008 global financial crisis
- It provided support packages after natural disasters like the 2011 Thai Floods
- JBIC has provided over $20 billion in loans for renewable energy projects
- It requires environmental reviews prior to financing coal power plants
- JBIC issues annual sustainability reports
- As of March 2022, JBIC’s assets totaled $423 billion
- Its outstanding loans and guarantees amounted to over $300 billion
- JBIC raised around $50 billion in funding during FY2021
Overall, JBIC has enabled Japanese companies and exports to grow globally while promoting strategic overseas economic development for Japan. It fills an important role that complements private lenders.
In summary, the Japan Bank for International Cooperation (JBIC) plays a vital role in supporting the overseas expansion and competitiveness of Japanese companies and industry.
As an export credit agency and policy-based financial institution, JBIC provides financing, credit guarantees, and other services that enable Japanese firms to mitigate risks and conduct business globally.
Key points about JBIC include:
- Founded in 1999 through a merger of state lenders
- Wholly owned by the Japanese government
- Mission to promote economic ties between Japan and other countries
- Provides export loans, overseas investment loans, untied loans, and credit guarantees
- Finances projects to secure strategic resources and infrastructure
- Supports Japanese exports across many sectors
- Complements private financial institutions
- Helps Japanese companies compete globally
With over $300 billion in outstanding loans and guarantees and operations in 18 countries, JBIC continues to serve a critical function for Japan’s international economic strategy and global business expansion.
What is JBIC?
JBIC is an export credit agency and policy-based financial institution owned by the Japanese government. It was established in 1999 through the merger of several state-owned lenders.
What is JBIC’s mission?
JBIC’s mission is to promote economic ties between Japan and overseas countries. It provides financing and support to help Japanese companies expand globally and secure strategic resources.
What types of financing does JBIC provide?
JBIC provides export loans, overseas investment loans, untied loans, credit guarantees, and makes equity investments overseas. It finances sectors like infrastructure, natural resources, manufacturing exports, etc.
Who can access JBIC’s services?
JBIC’s services are primarily aimed at supporting Japanese companies conducting business overseas across various industries. It complements private financial institutions.
Where does JBIC operate?
JBIC is headquartered in Tokyo and has offices in 18 countries across Asia, North America, Europe, and the Middle East. It finances projects and exports globally.