Japan Bank for International Cooperation

The Japan Bank for International Cooperation (JBIC) offers risk mitigation instruments through its guarantee facility. Guarantees are provided to overseas Japanese companies, bonds issued by governments of developing countries and private sector financial institutions that participate in co-financing infrastructure projects. Through a wide range of guarantees, JBIC intends to address various political and counterparty risks that often hinder the provision of long-term private sector finance for infrastructure projects.

JBIC´s guarantees are provided for:

• Corporate bonds issued by Japanese companies/affiliates in overseas local capital markets.
• Currency conversion and transfer risks, as well as country risks: By offering guarantees to Japanese private financial institutions, JBIC aims at facilitating business activities of Japanese companies abroad as well as the provision of medium- to long-term financing for developing countries.
• Currency swaps: Guarantees for swap transactions to support local currency financing of, among others, infrastructure projects implemented and/or financed by Japanese companies.
• Joint exports of machinery and equipment: Counter guarantees to Japanese companies that export equipment together with companies headquartered in other jurisdictions. The latter is required to obtain a similar guarantee from their national export credit agency. Such guarantees are covered under the multilateral mutual guarantee scheme.

Guarantees cover a range of infrastructure projects.

Target regions are North America, Latin America and the Caribbean. To date, Asia has been the largest recipient, with 38 per cent of total guarantees followed by North America (27 per cent), Europe (23 per cent), the Middle East (6 per cent), Latin America and the Caribbean (4 per cent). Guarantees are awarded on a case-by-case basis.

https://www.jbic.go.jp/en/support-menu/guarantee.html