- Japan Bank for International Cooperation (JBIC; Governor: Koji Tanami) signed on October 19 a memorandum of understanding (MOU) with International Finance Corporation (IFC)1 for strengthening cooperation on private-sector trade and investment finance operations for developing countries.
- The MOU set forth: (1) to establish principles for enhancement of the cooperative relationship in cofinancing projects in developing countries, particularly in project finances2; and (2) to share the expertise that both institutions have acquired through their years of operations.
- To date, JBIC has cofinanced projects with IFC mainly in project financing. The MOU, under which JBIC and IFC have reached comprehensive consent as to the basic perception of cofinancing in advance, will enable the two institutions to reduce the lead time necessary to structure cofinancing projects, thereby increasing convenience for customers. It will also allow the two institutions to draw on their respective longstanding close ties with developing country governments and borrowers in a synergistic manner, and will thus serve toward more efficient project undertaking.
- In seeking to realize cofinancing projects, the two institutions will actively share their respective expertise and know-how pertaining to lending to large-scale infrastructure projects in developing countries, environmental and social considerations, local currency lending, securitization, etc. The enhanced JBIC-IFC partnership will further support Japanese business development in the developing countries, as well as complement and promote overseas lending and investment activities of private financial institutions regarding these cofinancing projects.
- JBIC will vigorously support overseas business development of Japanese firms, while drawing on and developing cooperative partnerships with multilateral development finance institutions such as IFC.
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