Japan signs first $2.2 billion loan under $550 billion US investment pledge

Japan has signed a $2.2 billion loan agreement for the first batch of projects under its $550 billion U.S. investment pledge, kicking off financing tied to a trade deal ‌that cut ⁠U.S. ⁠tariffs on Japanese imports to 15%.

State-owned Japan Bank for International Cooperation said on Friday it would provide about a third of the $2.2 billion financing, with the rest provided by commercial banks.

Sources ⁠familiar with ‌the matter said the commercial bank portion will be provided by ⁠Mitsubishi UFJ Financial Group , Sumitomo Mitsui Financial Group, and Mizuho Financial Group, and will be guaranteed by state-owned Nippon Export and Investment Insurance (NEXI).


The first three projects, with a combined value of $36 billion, include an oil ‌export facility in Texas, an industrial diamond plant in Georgia, and a natural gas-fired ⁠power plant in Ohio.

Under the arrangement with the U.S., available free cash flows from investments will be split evenly between the two countries until a specific allocation is reached, after which 90% will go to the U.S.