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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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