Project Financing / Structured Finance
In 1998, DBJ pioneered project finance in Japan. From these beginnings, our accumulated expertise in this area, centering on energy and infrastructure projects, has propelled us to our current position as one of Japan's leaders in project finance.
Applying our accumulated expertise, we act as a financial advisor, providing clients with support and advice. We act as a lead arranger in putting together project finance packages, offer senior and mezzanine loans and participate in projects through equity investment, meeting clients' needs and addressing the various issues they face in a host of ways.
Types of Operation
We have a wealth of expertise in helping companies in the energy and infrastructure sectors find project financing that they can repay through operating revenues and working cash flow, without relying on specific corporate creditworthiness or collateral value.
Fukuoka Clean Energy Corporation
DBJ addressed this situation by structuring an arrangement involving a direct agreement between the city of Fukuoka and Kyushu Electric and a banking syndicate, providing financing to be repaid through fees received from the city of Fukuoka for processing waste and through income from the sale of electricity to Kyushu Electric. This scheme clearly outlined the division of risks, enabling long-term financing from other financial institutions.
DBJ was involved in the project conception from a neutral standpoint, and provided project finance to PASMO Co., Ltd., the company that issues and manages PASMO reusable prepaid travel cards.
JR Sapporo Hospital
DBJ acted as co-arranger in constructing a stable scheme under which local area financial institutions established senior loans and DBJ executed a mezzanine loan.
TOYO TIRES Turnpike
Equity participation by DBJ in the business transfer of the former Hakone Turnpike was Japan's first infrastructure fund initiative. Furthermore, in cooperation with the Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo Trust and Banking Company, Limited, we accommodated funding through project finance.
We carry out equity support to enhance liquidity and facilitate business regeneration.
DBJ helps clients raise funds that take advantage of the revenue-generating characteristics of assets with special characteristics, such as ships and airplanes.
Securitization allows companies to convert their rights to monetary interests into salable form. Securitized monetary claims, which are backed by the revenues and cash flows that are generated by the underlying claims, can be used to generate funding through financial liquiditization. A method known as whole business securitization enables certain businesses to securitize their entire operations, backed by future cash flows. This method can be employed to restructure a client's balance sheet and procure financing under favorable conditions. DBJ uses various methods, including non-recourse loans, to help clients raise funds.
Private Finance Initiative (PFI)
Since the creation of the Private Finance Initiative (PFI)* in 1999, DBJ has accumulated PFI expertise to the point where the bank is now an industry leader in PFI. Taking advantage of this store of knowledge, as well as strong relations with public-sector entities, DBJ supports the efforts of clients who are considering PFI.
* Law Concerning Facilitation of the Improvement, Etc. of Public Facilities, Etc. by Private Fund, Etc.
As the lead arranger for the project finance of this private finance initiative (PFI), DBJ constructed a flexible finance scheme that provides business support from operational start-up through the longer term (up to 30 years).