jbic`s recent activities jbic`s recent activities adfiap 35 th annual meeting april 26th, 2012...

JBIC`s Recent ActivitiesJBIC`s Recent Activities

ADFIAP 35th Annual MeetingApril 26th, 2012

Istanbul

Nobuyuki Higashi

Executive Officer for Asia and Pacific

Japan bank for International Cooperation

1Japan Bank for International Cooperation

Japan Bank for International Cooperation 2

JBIC’s Missions

１． Securing the supply of energy and natural resources to Japan

２． Maintaining and improving the international competitiveness of Japanese industries

３． Responding to the international financial crisis

４． Preserving the global environment


業務概況

（ billions JPY ）

JBIC’s Total Commitments (1997-2010)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Overseas Investment Loan Import LoanExport Loan Untied LoanGuarantee Equity Participation

Asian Currency Crisis

Global Financial Crisis


Overview of JBIC portfolio

Outstanding Amount by Country as of the end of FY 2010

(JPY Bil)

Others11%

Africa2%

Europe10%

North America12%

Middle East17%

Asia

27%

Latin America

0

200

400

600

800

1,000

1,200

IndonesiaBrazil

Russia

Mexic

oUAE

Philippines

Saudi A

rabia

Australia Ira

n

21%


JBIC’s FacilitiesTy

pe o

f Fin

anci

al T

ools

Type of Credits

Dire

ct L

oans

Gua

rant

ee

Equity InvestmentCorporate Finance Project Finance Sovereign Finance

Recently JBIC is empowered to provide a variety of financial services for its customers and partners…

Direct Loans on Corporate

Finance Basis

Direct Loans to Government

(Tied / Untied)

Guarantee for Commercial

Bank Loans etc

Equity Investment in Project

Companies/Funds

Guarantee for Samurai Bonds

+ Guarantee

covering Political Risks

etc

Direct Loans on Project Finance

Basis


JBIC`s Strategy and Target Sectors

InfrastructureProject

Infrastructure PPPProject

Private Firms (local)Private Firms (foreign)

Governments/State-Owned Firms

JBIC

Commercial Lenders

Sovereign Finance

Public Sector

Private Sector

Natural ResourcesDevelopment Project

Manufacturing Project

Natural ResourcesDevelopment Project

Manufacturing Project

Developing Countries

Equity Investment

Project Finance

Corporate Finance

Political risk

guarantee


JBIC`s Activities in Private Initiative Infrastructure Projects and

Response to Financial Crisis


JBIC’s Activities in Asia 1990- :Dawn of Private Initiative Infrastructure Projects

Philippines・ Pagbilao Power Plant (1993)

Indonesia・ Paiton Power Plant (1995)

China・ Guangdong Zhuhai Power Station (1996)


Asian Crisis and JBIC’s Response (1998- )

Thailand 14.7 bil.USD

Untied LoansOverseas Investment

Loans

Malaysia4.2 bil.USD

Indonesia 8.4 bil.USD

Korea8.6 bil.USD

Philippines 3.9 bil.USD


Resumption of Private Initiative Projects and Preservation against Future Crisis (2000- )

Thailand・ BLCP Power Plant (2004)・ Kaeng Khoi 2 Power Plant (2005)・ Ratchaburi Power Plant (2005)

Vietnam ・ Phu My 2-2 Power Plant (2002)・ Phu My 3 Power Plant (2003)

Philippines・ Ilijan Power Plant (2000)・ Mindanao Power Plant (2003)・ Power Asset Acquisition (2005)・ Power Asset Acquisition (2007)

Support to SovereignSupport to Private

SectorABMI


Malaysia 0.12 bil.USD

Indonesia 0.11 bil.USD

Korea 0.10 bil.USD


Global Financial Crisis and JBIC’s Response (2008- )

Credit Guarantee to Samurai Bond

Trade Financing Facility to local banks

India 0.1bil.USD


Malaysia 0.7 bil.USD

Indonesia1.4bil.USD

Vietnam 0.1bil.USD

Korea 0.3bil.USD

Philippines 1.4bil.USD


New Framework for Regional Infrastructure Development and PPP (2010- )

Thailand・ Nong Saeng Natural Gas-Fired Power Plant (2011)

Indonesia・ Paiton 3 Coal-Fired Power Plant(2010)・ Cirebon Coal-Fired Power Plant(2010)

GMS

Support to SovereignSupport to Private SectorRegional Development

Framework

Indonesia Economic Development CorridorsPolicy Dialogue betweenthe Government of Indonesia

and JBIC

DMIC


New Challenges in Financial Market

~Euro Crisis, Basel III~


Financial Flow to Emerging Counties

source ） IMF World Economic Outlook (11 Sep 2011)

-300.0

-200.0

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.020

03

2004

2005

2006

2007

2008

2009

2010

(201

1)

Private Financial Flows(Net)Official Financial Flows(Net)

Lehman Shock

(USD/billions)


Euro Crisis : Market Presence of European Banks

6.4 6.2

4.1

2.2

8.8

13.3

10.7

8.6 9.1

6.2

21.6

23.8

13.5

16.0

10.6

0.0

5.0

10.0

15.0

20.0

25.0

2007 2008 2009 2010 2011Q3

J apanese Banks

French Banks

European Banks(including French)

(%)

source ） dealogic – Project Ware* Cumulative % of banks listed in top 10


0

50

100

150

200

250

300

350

400

450

500

2011

/6/1

2011

/6/1

520

11/6

/29

2011

/7/1

320

11/7

/27

2011

/8/1

020

11/8

/24

2011

/9/7

2011

/9/2

120

11/1

0/5

2011

/10/

1920

11/1

1/2

2011

/11/

1620

11/1

1/30

2011

/12/

1420

11/1

2/28

bps.

US Banks

French/ Italian/Spanish BanksJ apaneseBanksUK Banks

Euro Crisis: Affecting European Banks Activities

source ） Markit

French/Italian/Spanish banks’ CDS spared are widening

Facing difficulties in funding long-term USD at proper cost

No show of French banks (market leaders to date) even in well-market recognized projects (e.g. Barzan Gas Project)

5 year CDS


Deal Amount in Project Finance Market

source ） dealogic – Project Ware

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2007 2008 2009 2010 2011 Q3)（

Indian Sub-continentCaribbeanEastern EuropeSub-Saharan AfricaLatin AmericaAsiaMiddle East & N.AfricaAustralasiaNorth AmericaWestern Europe

(USD/billions)


Deal Amount in Project Finance Market (Emerging Countries)

source ） dealogic – Project Ware

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2007 2008 2009 2010 2011 Q3)（

Indian Sub-continentAsiaLatin AmericaCaribbeanEastern EuropeMENA Sub-Sahara＋

(USD/billions)


Basel III: Changing Global Project Finance Market?

1 ． Risk Weight for Project Finance Asset Same as Basel II? Treatment of ECA-backed assets?

2 ． Introduction of Liquidity Requirement Liquidity Coverage Ratio

Net Stable Funding Ratio 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

　　　 Shortening loan-tenor? Additional funding premium on long-term loans?Shortening loan-tenor? Additional funding premium on long-term loans? Can off-balance long-term loan assets? How to recycle the capital?Can off-balance long-term loan assets? How to recycle the capital?

Stock of high-quality liquid assetsTotal net cash outflows over the next 30 calendar days ≧ 100%

Available amount of stable fundingRequired amount of stable funding ＞ 100%


JBIC`s New Initiatives


A Model for JBIC`s New Initiatives in PPP Finance

Financial cooperation and various channels with the host government

Assistance for ・ macro economy ・ sovereign debt crisis

Policy Dialogue regarding PPP scheme• legal structure• institutional design 　　　　• government supports

Execution of infrastructure projects in PPP scheme


Policy Dialogue between the Government of Indonesia and JBIC

Working Team 1 Finance for Infrastructure Projects;•GOI/IIGF-JBIC Credit Enhancement Scheme•Power Sector•Water Sector•Transportation Sector, etc.

Working Team 2 Macro prudence and risk management:•Periodical discussion on economic policy•Risk management of public sector investment

Ad hoc meetings, ad hoc seminars (Natural Gas, Renewable, Clean Coal, etc.)

High-Level Annual Meeting


Indonesia-Japan G to G Initiative/Metropolitan Priority Area (MPA)

New Port - Berth construction (Public) - Terminal operation (Private) - Container yard (Private)

Access Roads - Construction (Public) - Operation (Private)

Upgrading of Industrial Area (East Jakarta) - Logistics (roads, dry ports, etc.) (Private + Public) - Communication (optical fiber cable, etc.) (Private) - Custom services (Public)

Energy supply - Power (IPP, PPP, etc.) (Private + Public)- Gas (LNG terminal, pipeline, etc.) (Private + Public)

Project 1

- Construction (Public) - Operation (Public + Private)

Project 2Mass Transportation

Project 4

- Initial waterworks (Public) - Operation (Private)

Water Supply

- Operation (Private) - Regulation (Public)

Project 5Waste Management

- Runway construction (Public) - Operation (Private)

Project 3Airport

Source: J-MOFA


DMIC project : a mega infra-structure project of total USD 90 billion with the financial & technical support from Japan, focusing on a 150km band on both sides of the 1,483km freight rail line planned between Delhi and Mumbai.

In Dec. 2009 JBIC agreed to provide USD 75 million loan to establish Project Development Fund (PDF) for mainly feasibility study (F/S) of the DMIC project.

In Dec. 2011 the governments of India and Japan announced to launch USD 9 billion facility (USD 4.5 billion from each country) for implementation of the DMIC project.

The Japanese government also announced the intention of equity participation of Japan into Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) which acts as an intermediary for the purpose of development and establishment of infrastructure projects in DMIC region.

Delhi

Mumbai

J.N Port

Cargo Train

Industrial area (more than 100 km2 ）

Industrial regions (more than 200 km2 ）

Delhi-Mumbai Industrial Corridor (DMIC) Project in India


PFI Awards 2011 ： Global Multilateral of the Year

In January 2012, JBIC was awarded Global Multilateral of the Year(2011) by Project Finance International magazine.

“JBIC is now supporting Japanese industries getting involved from the early stages of project formulation – for example, through financial policy dialogue with the Indonesian government, enhanced partnerships with host country governments, and feasibility studies on high-speed railways.

It is being pushed to actively support overseas projects, not just natural resources and power, but also in integrated infrastructure systems and other strategic projects. Also it is expected to support overseas businesses that preserve the global environment, such as preventing global warming.

Thus, there is no reason for JBIC to stop lending. In PFI’s midyear league tables, JBIC topped the table on multilateral developing country exposures, with a total of US$2,962m.

It will see further lendings not only to developing countries but also to developed ones. It will help make things happen.”

( PFI YEARBOOK 2012 )


Thank you.Thank you.

Information contained in this presentation and its materials may be subject to change without notice and may at any time be superseded. JBIC and/or any person accept no liability whatsoever for any direct, indirect or consequential loss of any kind arising out of the presentation and its materials, or relevant financial advisory services.

All rights reserved. No part of the materials may be reproduced, stored, or transmitted in any form or by no means, electronic, mechanical, photocopying or otherwise, without the prior consent of JBIC.

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