PRESENTATION material of JBIC. July 2018

Transcription

1 PRESENTATION material of JBIC July 2018

2 Disclaimer Disclaimer The exchange rate used in this presentation is for your convenience only and may differ from the Japanese yen/u.s. dollar exchange rate, Canadian dollar/u.s. dollar exchange rate, and Sterling Pound/U.S. dollar exchange rate in effect as of the date of this presentation. JBIC has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents JBIC has filed with the SEC for more complete information about JBIC. You may get these documents free of charge by visiting EDGAR on the SEC Website at Alternatively, JBIC, any underwriter or any dealer participating on the offering will arrange to send you the prospectus if you require it by calling Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free from the United States at You can access JBIC s most recent prospectus satisfying the requirements of Section 10 of the United States Securities Act of 1933, as amended, at the following website: 1

3 Highlights Solid institutional relationship with the Japanese government Financial institution wholly owned by the Japanese government, government authorization required for board appointment/removal and amendment of the JBIC Act required for any major organizational changes. Explicit government guarantee Given an unconditional and irrevocable guarantee by the Japanese government, JBIC bonds offer the best proxy for Japanese sovereign exposure in non-jpy. Risk weight Under the Standardized Approach, 0% in the US & Japan and up to 20% in the EU zone. Track record of successful issuances and commitment to the market JBIC has the most transparent USD curve among the Japanese SSA issuers and committed to provide regular liquidity by tapping the market continuously in benchmark size. Globally established investor relationships JBIC has established and maintained its strong relationship with global institutional investors through continuous issuances in the international market. 2

4 Table of Contents 1 JBIC Overview 2 JBIC Financial Aspects 3 JBIC in the Capital Markets 4 Japan Overview 3

5 Brief Profile Brief Profile Tadashi Maeda / Governor Name Japan Bank for International Cooperation (JBIC) Established Apr 1, 2012 Governor Tadashi Maeda Capital* (100% Government-owned): JPY 1,765bil (USD 16.6bil) Total Assets* JPY 18,012bil (USD 169.5bil) Net Assets* JPY 2,546bil (USD 24.0bil) Government-owned financial institution Number of Employees 594 (As of JFY2018 budget) Japan Bank for International Cooperation (JBIC) is a policy-based financial institution wholly owned by the Japanese government. Overseas Offices (16 offices) Policy-based finance Moscow New York Washington, D.C. London Paris Beijing Dubai Mexico City JBIC provides policy-based finance with a mission of contributing to the sound development of Japan, the international economy and society as a whole. New Delhi Hanoi Bangkok Manila Singapore Jakarta Rio de Janeiro Buenos Aires * Figures as of March 31, 2018 JPY106.24/USD as of March 31,

6 Main Features Full government ownership Under the JBIC Act, the Government of Japan has an obligation to hold 100% capital stock of JBIC at all times. Government involvement in board appointment/removal Any resolution of appointment or removal of any board member of JBIC takes effect only after authorization by the Minister of Finance of Japan has been granted. No dissolution without further enactment Any major organizational change of JBIC, such as dissolution, merger or partition, requires an amendment of the JBIC Act. Governmental supervision JBIC s annual budget requires an approval from the Diet; JBIC is subject to inspection by the Financial Services Agency of Japan; the Minister of Finance has general authority to supervise JBIC. 5

7 Establishment of JBIC Pursuant to the Japan Bank for International Cooperation Act (the JBIC Act), The Japan Finance Corporation ( JFC ) spun off its International Wing on April 1, Effective the same date, Japan Bank for International Cooperation (JBIC), a new joint-stock corporation wholly owned by the Government of Japan, was established. Oct Oct April 1, 2012 Dec Former JBIC JFC New JBIC The Export-Import Bank of Japan (JEXIM)* IFOs JBIC (International Wing) Mar.1961 National Life Finance Corporation Micro Business and Individual Unit Overseas Economic Cooperation Fund, Japan (OECF) OECOs Agriculture, Forestry and Fisheries Finance Corporation Japan Finance Corporation for Small and Medium Enterprise Agriculture, Forestry, Fisheries and Food Business Unit Small and Medium Enterprise (SME) Unit (Domestic Finance Units) JICA * Originally established as The Export Bank of Japan and renamed as JEXIM in Succession from JFC All assets and liabilities relating to the former JBIC operation, JFC, including bond obligations, have been assumed by JBIC. 6

8 Main Missions of JBIC As the government s financial arm to materialize external economic policies of Japan, JBIC contributes to the sound development of Japan and the international economy and society. (1) Natural Resources (2) Japanese Industries JBIC promotes the overseas development and securement of resources which are important for Japan. Supporting the development of natural resources overseas Assuring the import of natural resources to Japan JBIC provides support to maintain and improve the international competitiveness of Japanese industries. Promoting the export of machinery, equipment, marine vessels and other infrastructure Supporting the foreign direct investment by Japanese industries, including small/mediumsized enterprises (SMEs) and infrastructure sector 7

9 Main Missions of JBIC (Cont d) (3) Global Environment (4) International Financial Order JBIC promotes the overseas business having the purpose of preserving the global environment, such as preventing global warming. Promoting renewable energy projects overseas such as wind and geothermal Supporting energy-saving projects overseas JBIC plays the role to prevent disruptions to the international financial order or take counter-cyclical measures to stabilize financial market under such disruptions. Asian financial crisis in Global financial crisis since 2008 Commitments (JPY hundred million) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Asian Currency Crisis Financial Crisis Export Loans Import Loans Overseas Investment Loans Untied Loans Equity Participations Guarantee 8

10 Role of JBIC in the Japan Growth Strategy Expanded Partnership for Quality Infrastructure Expanding the supply of financial resources towards infrastructure projects Supply of financial resources towards infrastructure projects across the world, aiming to achieve approximately $200 billion for the next five years Expand the targeted area from Asia to the whole world (such as Russia, Africa) Expand the scope of infrastructure from a narrow sense to a broader sense, which includes natural resources and energy, and hospital, etc. The strategy will be executed by pertinent organizations of Japan, such as JBIC, JICA, NEXI, JOIN, JICT, and JOGMEC, etc. Strengthening of the institutional capacity and financial grounds of Japan s relevant organizations Enable to increase the supply of financial resources, strengthen the financial capacity of JBIC May 23, 2016 Economic Cooperation Infrastructure Strategic Meeting Economic Measures for Realizing Investment for the Future 21 st century type infrastructure development Support for overseas expansion of infrastructure business etc Based on the Expanded Partnership for Quality Infrastructure, the government will support Japanese companies overseas infrastructure business expansion through making positive use and reinforcing financial grounds of Japan s relevant organizations, such as JBIC. Response to risk such as uncertainly due to UK s exit from the EU and support for small and medium-sized companies as well as local communities Financing support of small and medium-sized companies The government will support overseas business expansion by utilizing JBIC s loan facility to support overseas development Aug. 2, 2016 Decision at a Cabinet meeting Japan Revitalization Strategy 2016 Japan s measures for Africa at TICAD VI Taking in overseas growing markets Supporting small and medium-sized companies expanding their business overseas Economic Diversification and Industrialization Japan will steadily translate into action in Africa the outcomes of the G7 Ise- Shima Summit such as G7 Ise-Shima Principles for Promoting Quality Infrastructure Investment. Increasing infrastructure exports In accordance with the Expanded Partnership for Quality Infrastructure, aiming to supply of financial resources approximately Japan will promote private investments through expanding the amount of $200 billion for the next five years, as well as to improve further relevant Facility African Investment and Trade enhancement (FAITH) by JBIC by measures and to strengthen the institutional capacity and financial USD 2 billion (one year extension of the term). grounds of Japan s relevant organizations including JICA, JBIC, NEXI and JOGMEC. June 2, 2016 Decision at a Cabinet meeting Aug. 27, 2016 Tokyo International Conference on African Development 9

11 JBIC s Loan Portfolio Loans Outstanding*: USD billion** Financial Instruments Geographical Distribution*** Import Loans 4.2% Untied Loans 5.1% Export Loans 6.7% Equity Participation Governmental Loans 1.5% 0.2% Africa 2.3% Middle East 13.1% International Organizations, etc. 0.2% Others 3.2% North America 17.6% Oceania 14.5% Latin America and the Caribbean 17.1% Overseas Investment Loans 82.4% Asia 15.8% Europe 16.2% * Includes Equity Participation ** Figures as of March 31, 2017 *** Basically, classified based on the location of the projects under the JBIC s definition of regions JPY112.19/USD as of March 31, 2017 Due to rounding calculations, charts and tables may not add up to 100% 10

12 Table of Contents 1 JBIC Overview 2 JBIC Financial Aspects 3 JBIC in the Capital Markets 4 Japan Overview 11

13 Financial Highlights for JBIC Balance Sheet* Statement of Operations* * Consolidated basis from JFY 2017 * Consolidated basis from JFY 2017 (USD million) (USD million) JFY2014 JFY2015 JFY2016 JFY2017 Total Assets (A) 173, , , ,541 Loans 135, , , ,200 Total Liabilities 150, , , ,572 Total Net Assets (B) 23,160 23,272 23,603 23,969 Capital 13,093 13,093 15,841 16,615 Retained Earnings 9,347 9,150 7,929 8,317 Net Assets Ratio (B) / (A) 13.33% 14.06% 13.50% 14.14% JFY2014 JFY2015 JFY2016 JFY2017 Net Business Income Ordinary Income 2,421 2,259 2,773 3,671 Interest Income 1,816 2,012 2,440 3,170 Ordinary Expenses 1,287 1,857 2,383 3,087 Interest Expenses 1,093 1,165 1,670 2,346 Ordinary Profit 1, Net Income 1, BIS Capital Adequacy Ratio ** 14.47% 16.04% 17.12% 19.18% Risk Management Loans Ratio 1.59% 1.88% 1.67% 3.07% ** Non-consolidated basis JFY: April 1- March 31 JPY106.24/USD as of March 31,

14 Level of Profit and Outstanding Balance (USD billion) (USD million) 160 1,400 Outstanding Loans from JBIC (L) 140 Outstanding Bonds issued by JBIC (L) , , Net Business Income (R) Net Income (R) , JFY Ratio of Foreign Currency Loans in Outstanding Loans 75.2% 81.7% 84.5% 87.4% 89.1% 91.5% 93.3% JPY106.24/USD as of March 31,

15 Table of Contents 1 JBIC Overview 2 JBIC Financial Aspects 3 JBIC in the Capital Markets 4 Japan Overview 14

16 Characteristics of JBIC Bonds Explicit government guarantee JBIC s foreign bonds benefit from explicit government guarantees*. Such guarantees are provided unconditionally and irrevocably. *JBIC Act and the Act Concerning Special Measures with respect to Acceptance of Foreign Capital from International Bank for Reconstruction and Development, etc. constitute the legal basis of government guarantee for JBIC s foreign bonds. Issuer and Guarantor Ratings** Issuer (JBIC) Long-term Rating Outlook Moody s A1 stable Standard & Poor s A+ positive Guarantor (Japan) Long-term Rating Outlook Moody s A1 stable Standard & Poor s A+ positive Risk Weight: Under the Standardized Approach, 0% in the US & Japan and up to 20% in the EU zone. Japan Sovereign Exposure in non-jpy currencies JBIC foreign bonds provide an investment opportunity for Japan Sovereign Exposure in non-jpy currencies. ** As of June 30,

17 Operational and Financial Plans JBIC Operational Plan (USD million) JBIC Funding Plan JFY2016 Plan** * Fiscal Investment Loan Program ** As amended responding to the 3 rd supplementary budget approved on January 31, 2017 *** Includes borrowings from the foreign reserve account of the Japanese Government and Government-guaranteed foreign currency long-term borrowing from financial institutions USD conversion based on official rate for each budget (JFY2016: JPY120/USD, JFY2017: JPY110/USD, JFY2018: JPY112/USD) Due to rounding calculations, tables may not add up to 100% 16 % JFY2017 Plan % JFY2018 Plan Export Loans 2,462 9% 2,864 12% 3,151 16% Import / Overseas Investment Loans 22,955 84% 19,227 81% 15,446 77% Untied Loans 750 3% 455 2% 446 2% Equity Participation 1,000 4% 1,182 5% 1,107 5% Total 27, % 23, % 20, % (USD million) JFY2016 Plan** % JFY2017 Plan % JFY2018 Plan Borrowing from government (FILP) * 4,725 17% 4,009 17% 2,589 13% Government-guaranteed foreign bonds (5yr ) Government-guaranteed foreign bonds (5yr<) 8,333 31% 10,000 42% 7,143 35% 2,000 7% 6,000 25% 7,857 39% Domestic bonds 500 2% 545 2% 536 3% Capital contribution from government 1,183 4% 773 3% 557 3% Miscellaneous 10,425*** 38% 2,400*** 10% 1,469*** 7% Total 27, % 23, % 20, % % %

18 JBIC Bonds in the International Capital Markets Flagship issuer representing Japanese sovereign credit in the international capital markets Since 1983, JBIC and its predecessors have issued Japanese government-guaranteed bonds in the international markets: 104 bonds, including 46 bonds by JEXIM. Largest issuer of foreign bonds guaranteed by the Japanese government. Variety of experience: Issued in USD, EUR, CHF, GBP, CAD, THB and JPY. Issuance list since 2014 Allocation Distribution of USD global bonds since 2016 Launch Term Primary Type Currency Amount Coupon Date (yrs) Spread Global-Dollar USD 1,500 mil % MS+26bp Global-Dollar USD 1,500 mil % MS+35bp Global-Dollar USD 1,500 mil % MS+47bp Global-Dollar USD 1,000 mil 3 3mL+39bp 3mL+39bp Global-Dollar USD 1,500 mil % MS+39bp Global-Dollar USD 1,250 mil % MS+51bp Global-Dollar USD 1,250 mil % MS+67bp Global-Dollar USD 500 mli 3 3mL+48bp 3mL+48bp Global-Dollar USD 1,500 mil % MS+48bp Global-Dollar USD 1,500 mil % MS+64bp Global-Dollar USD 1,500 mil % MS+70bp Global-Dollar USD 500 mil 3 3mL+57bp 3mL+57bp Global-Dollar USD 1,500 mil % MS+57bp Global-Dollar USD 1,000 mil % MS+63bp Global-Dollar USD 1,800 mil % MS+64bp Global-Dollar USD 1,500 mil % MS+58bp Global-Dollar USD 1,500 mil % MS+61bp Global-Dollar USD 1,000 mil % MS+75bp Global-Dollar USD 1,500 mil % MS+80bp Global-Dollar USD 1,000 mil % MS+86bp Global-Dollar USD 1,000 mil % MS+19bp Global-Dollar USD 1,500 mil % MS+28bp Global-Dollar USD 1,000 mil % MS+31bp Global-Dollar USD 1,500 mil % MS+20bp Global-Dollar USD 1,000 mil % MS+42bp Global-GBP GBP 425 mil % G+66bp Highlighted lines are bonds issued in JFY2017 3yr FIX FRN FIX FRN FIX FRN FIX yr yr EMEA Asia Americas AM Bank CB & OI Ins & Pen & Others 3yr FIX FRN FIX FRN FIX FRN FIX yr yr

19 Recent Issuances in the International Capital Markets Annual size of recent issuances has been expanding to meet larger USD funding needs. For JFY 2018, JBIC will fundraise necessary amount of USD for its overseas businesses, through foreign bond issuances within the budget of US$ 15billion. (USD million) 18,000 5yr< 16,000 5yr 2yrs 14,5 0 15,0 0 14,000 3yrs 5yrs 12,000 10, yrs 7yrs 10yrs 10,3 0 2,000 6,000 7,857 8,000 6,750 6,612 6,000 2,500 5,250 5,250 3,500 4,250 4,000 2,000 0 JFY 2,250 5,000 3,5 0 3,5 0 7,143 4,000 2,385 3,000 1,500 1,000 4,800 4,250 3,000 2, ,000 2,500 1,250 1,250 1, * * As USD of May conversion 15, 2017 based on official rate for the JFY2018 budget (JPY112/USD) CAD0.77/USD, GBP1.44/USD 18

20 Table of Contents 1 JBIC Overview 2 JBIC Financial Aspects 3 JBIC in the Capital Markets 4 Japan Overview 19

21 Abenomics : Highlights of the Growth Strategy Real GDP trends (JPY billion) 540, , , , , ,000 0 Source: National Accounts Statistics from the cabinet office Real GDP (Seasonally adjusted) Unemployment rate has decreased (%) , , , , , , , , , ,166524, ,823 Unemployment rate (Seasonally Adjusted) 533, , , , , High level of business sentiment (%) Business Conditions DI (Tankan) Large firms manufauturing -30 Large firms non-manufauturing -40 SMEs manufauturing SMEs non-manufauturing Source: National Short-Term Economics Survey of Enterprises in Japan ( Tankan ), Bank of Japan Stock prices have increased Stock price increase has been strong compared to major foreign markets Nikkei Average NY Dow FTSE Shanghai Composite German DAX (Jan June. 2018) /1 2013/9 2014/5 2015/1 2015/9 2016/5 2017/1 2017/9 2018/5 Source: Labor Force Survey from the Ministry of Internal Affairs and Communications Source: Based on Quick, average of month 20

22 Contacts Japan Bank for International Cooperation (JBIC) Capital Markets and Funding Division, Treasury Department, Treasury and Systems Group TEL : FAX : ir@jbic.go.jp URL : (JBIC) For information regarding Investor Relations, also visit the following website; refer to SEC EDGAR website ( for our latest Form 18-K Annual Report submitted September 5, (SEC CIK Code : , Japan Bank for International Cooperation) Bloomberg Ticker : JBIC <CORP> 21