Japan has approved a $624 million...
Japan has approved a $624 million untied loan to Mexico for the country's natural gas field development projects, the Japan Bank for International Cooperation (JBIC) said.
JBIC, Japan's main foreign aid agency, and Petroleos Mexicanos, an oil development arm of the Mexican government, signed an accord over the loan in Mexico City on Wednesday. The loan is to be co-financed with commercial banks, including Mizuho Corporate Bank, with JBIC providing a guarantee for the portion covered by private lenders.
The loan will finance five natural gas field development projects along the coast of the Gulf of Mexico.
This loan will also support Japanese business activities, as Japanese companies have been actively investing in projects to build natural gas-fired power plants in Mexico, the bank said.
As the Mexican government plans to construct more natural gas-fired power plants to meet the growing demand for power, this loan will lead to greater business opportunities for such Japanese companies, it said.
