- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on December 25 a Memorandum of Understanding (MOU) with seven entities, including Mizuho Corporate Bank, Ltd., JGC Corporation, The Export-Import Bank of China (China Exim Bank) and Tsing Capital Co., Ltd.*2, on the establishment of the Fund that would invest in the energy efficiency and environmental protection sector in the People’s Republic of China (China). The Fund will have a 1 billion RMB (approximately equivalent to 12 billion JPY) commitment.
- Considering the energy efficiency and environmental protection sector as one of the top policy agenda, the government of China has designated it as one of the industrial fields that should be developed with utmost effort under the 12th Five-Year Plan launched this year. Under such circumstances, a number of new growth companies are already emerging in this sector. Given the projection that its related markets will expand over the coming years, they will surely create huge business opportunities for Japanese firms.
- Under the partnership of major policy financial institutions, a private sector bank, a business corporation and a fund management firm in Japan and China, the Fund is intended to make equity investment in projects related to energy efficiency and environmental protection in China. The signing of this MOU is expected to clearly define the policy under which the Fund is established. It will also help realize joint projects undertaken by Japanese and Chinese firms in this sector, and to introduce Japanese companies’ advanced environmental technology to the Fund-financed projects, thereby contributing to the expansion of business opportunities for Japanese firms in the energy efficiency and environment sector in China.
- JBIC will continue to utilize a variety of financial facilities, including its equity participation function, to help create business opportunities for Japanese firms, thereby supporting them in maintaining and improving their international competitiveness and contributing to further deepening and developing close economic ties between Japan and China.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Tsing Capital Co., Ltd., will serve as an investment adviser to the Fund.