Japan’s finance ministry announced on Friday plans to establish a new investment facility at the state-owned Japan Bank for International Cooperation (JBIC) to help deliver on a $550 billion investment package as part of the recent tariff agreement with the United States.
Earlier this month, Japan and the U.S. signed a memorandum of understanding detailing the investment package, which will target key sectors such as semiconductors, metals, pharmaceuticals, energy, and shipbuilding. The investments are scheduled to be completed by January 2029, aligning with the conclusion of President Donald Trump’s current term.
The investment package will feature a mix of equity investments, loans, and loan guarantees, supported by JBIC and Nippon Export and Investment Insurance (NEXI), both state-backed entities. According to the finance ministry, the new facility at JBIC is designed to provide financial backing for Japanese companies seeking to expand overseas in industries that are vital to Japan’s economic security.
Additionally, the ministry confirmed an update to JBIC’s regulatory framework, broadening its capacity to invest in developed economies, including the automotive and pharmaceutical sectors. Previously, JBIC’s investments in developed markets were limited to select industries compared to its activities in emerging market economies.
