The Japan Bank for International Cooperation (JBIC) has signed an agreement to provide a guarantee for a syndicated loan to Petrleos Mexicanos (Pemex). The loan, totalling up to US$600mn, is provided by 13 commercial institutions in Japan, including Mizuho Corporate Bank.
Under this agreement the financing will be provided to fund Pemex’s development project in the Ku-Maloob-Zaap oilfield, the second largest oilfield in Mexico. By using the guarantee facility as a means of support for Japanese financial institutions in Mexico, JBIC plans to encourage and increase Japanese business development there. The guarantee will further assist Pemex in securing stable and long-term funds.
With the Japan-Mexico Economic Partnership Agreement coming into effect in April 2005, Japanese firms now enjoy the same national treatment as their Mexican counterparts for the procurement of goods and services by Mexican government agencies including Pemex.
It is expected that this loan will help to create and expand business opportunities for Japanese firms in oil, gas and other projects executed by Pemex and other Mexican government entities in the future.
Japan’s New Energy Strategy of May 2006 advocates the strengthening of comprehensive ties with energy producing countries in order to secure resources for Japan. This guarantee will strengthen ties with Mexico, the world’s fifth largest oil producing country.