Japan's three megabanks and the government-backed Japan Bank for International Cooperation plan to provide ?250 billion (about $1.5 billion) in loans for the first round of projects in the United States under the Japan-U.S. tariff agreement.
The entities are expected to invest additional funds in stages later on, informed sources said Friday.
The first-round projects are the construction of a gas-fired thermal power plant in Ohio, the development of crude oil export facilities and the production of synthetic diamonds. The total value of the three projects is expected to reach $36 billion.
One-third of the planned loans will be provided by JBIC and two-thirds by the megabanks ¡ª MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank. Loans by the three banks will be guaranteed by state-backed Nippon Export and Investment Insurance (NEXI).
In exchange for lower U.S. tariffs, Japan has pledged to provide up to $550 billion in loans and investments to the United States.
In March, the second round of projects under the pledge was announced, including next-generation nuclear and natural gas-fired power plant projects.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.