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JBIC takes safety in numbers

01 November 2002

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With Japan's economy shaken and not stirring, the Japan Bank for International Co-operation (JBIC) ? formed out of JEXIM and OECF in October 1999 ? has upped its activity in the past year. JBIC has been involved in a number of high profile, big-ticket debt projects, with loan commitments running as high as $190 million per project.

JBIC loan commitments in general are increasing in parallel with current market conditions. Whereas JBIC used to lend an average of 30%-50% of debt with a maximum of 60% ? the maximum has become the norm. And JBIC is not only being asked to lend more, but take on riskier lending. Consequently, JBIC upped its pricing recently, to almost match commercial bank margins. ?In the past our pricing might have been too low. We are now changing our attitude to adjust our pricing to the market standard and, on the other hand, being more aggressive to take risks now,? says Takahiko Onozuka, a director in the project finance...


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