September 2019 Capital Ratio 7714 as of March 2019 Credit Ratings SP A Positive Guarantee USD denominated bonds with explicit guarantee by the Government of Japan What is JICA Name J ID: 828781
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1 Japan International Cooperation Agency S
Japan International Cooperation Agency September 2019 Capital Ratio**: 77.14% as of March 2019 Credit Ratings: S&P: A+ Positive Guarantee: USD - denominated bonds with explicit guarantee by the Government of Japan What is JICA? Name: Japan International Cooperation Agency (JICA) Capital: 100% owned by the Government of Japan Date of establishment: October 1, 2003 Successor organization of multiple organizations including Overseas Economic Cooperation Fund established in 1961 Legal foundation: Act of the Incorporated Administrative Agency - Japan International Cooperation Agency (âJICA Actâ) Objectives: âJICA aims to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions .â (Article 3 of JICA Act) Mission: JICA, in accordance with the Development Cooperation Charter*, will work on human security and quality growth Offices: Headquarters, Domestic (14), and Overseas (96) *Development Cooperation Charter: development cooperation activities guidelines approved by the Cabinet in 2015. See Appendix â Japanese Development Cooperation Charter for detail. **Capital ratio = net assets / assets Note: In this material, exchange rate is USD/JPY = 100 unless otherwise stated References in this document to Japanese fiscal years (âJFYsâ) are to 12 - month periods commencing in each case on April 1 of the year indicated and ending on March 31 of the following year. ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Inves
2 tment ï Financial Statement and Fun
tment ï Financial Statement and Funding Plan ï Appendix 1 JICAâs Bonds Project Evaluation & Reporting The funded projects are : ï® monitored on site by 96 offices abroad , receiving progress reports from loan recipients ï® evaluated as part of JICAâs ex - post evaluation process upon completion in principle, and the results are published on website ï® summarized and published in an impact report Use of Proceeds The proceeds from issuing JICA bonds are: ï® used to establish basic infrastructure, social services and others in developing countries through sovereign loans and private sector investment ï® used for projects that are in line with the Development Cooperation Charter of Japan, and with the Sustainable Development Goals (SDGs) adopted at the UN Summit 2015 Management of Proceeds The proceeds are : ï® allocated and managed under the Finance and Investment Account, which is a udited by the Board of Audit of Japan and an independent auditor Photos: Shinichi Kuno/JICA Project Selection The project selection is conducted through a rigid process that involves: ï® evaluation based on OECD - DAC Criteria for Evaluating Development Assistance ï® review by external experts ï® approval by the Japanese government ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 2 JICAâs Japanese Government - guaranteed bonds* denominated in USD follows the below framework: *JICA also issues non government - guaranteed bonds. See Financial Statement and Funding Plan â Track Record â Bond I
3 ssuance for detail. JICA has set thr
ssuance for detail. JICA has set three pillars below as the key development issues, and strives to address these agendas through its development assistance. Source: JICA website: https://www.jica.go.jp/english/news/press/2017/170508_02.html https://www.jica.go.jp/english/news/press/2017/180222_03.html https://www.jica.go.jp/english/news/press/2016/161116_01.html https://www.jica.go.jp/english/low/news/press/2016/160629_01.html ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 3 Commitment in Addressing the SDGs Building a sustainable and resilient community through efforts to address global challenges Quality growth, and poverty eradication through such growth Sharing universal values and realizing a peaceful and secure society ï° Project Case : Disaster Risk Management Enhancement Project ï° Country: Bangladesh ï° Amount : USD 170mn (JPY 17bn ) ï° Agreement Date : June 2016 ï° Contributes to SDG Target 11.5.1 : Number of deaths, missing persons and persons affected by disaster per 100,000 people ï° Project Case: Egypt - Japan Education Partnership: Human Resource Development Project ï° Country : Egypt ï° Amount: USD 102 mn (JPY 10.2bn ) ï° Agreement Date : May 2017 ï° Contributes to SDG Target 4. b.1 : Volume of official development assistance flows for scholarships by sector and type of study ï° Project Case: Promotion of Universal Health Coverage ï° Country: Senegal ï° Amount : USD 84 mn (JPY 8.4bn ) ï° Agreement Date : November 2016 ï° Contributes to SDG Target 3.8.1:
4 Coverage of essential health services
Coverage of essential health services 1 2 3 Expanded Food Production An 80% increase The rate of increase in rice production in Sub - Saharan Africa [From 14 million tons in the baseline year to 25.16 million tons in 2014] Mathematics and Science Education 960,000 people in 60 countries The total number of teachers who received JICAâs training in mathematics and science education (1994 - 2015) Access to Safe Water 59 million people The total number of people who gained access to water with JICAâs aid for water supply facilities (2002 - 16) Clean Energy 1,230 MW Total installed capacity of operational geothermal power - generation facilities that have been built with Japanese ODA Loans (since JFY 1978) Development of Industrial Human Resources 821 students The number of ABE Initiative* participants (JFY 2014 - 2016) *African Business Education Initiative for Youth BOSAI: Disaster Risk Reduction 1/70 th The reduction in fatalities due to cyclones in Bangladesh [a comparison in death tolls caused by cyclones of similar scale between the 1970s and 2007] The figures reflects the development outputs of assistance provided by other donors also. Advanced Technology for Environmental Conservation 7,600 cases The annual number cases where forest change was detected in 77 countries (from Mar 2016 to Feb 2017 Japan Overseas Cooperation Volunteers 42,972 volunteers The cumulative total number of JOCVs dispatched (JFY 1965 - 2016) As the agency implementing Japanâs Official Development Assistance (ODA), JICA strives to alleviate social issues that many developing countries face. Here are the example of impacts JICA has made around the worl
5 d. Maternal and Child Health Handbook 2
d. Maternal and Child Health Handbook 25 countries 8 million copies The total estimated number of copies of the Maternal and Child health (MCH) Handbook distributed in Japan and 25 countries in one year (2016) Source: JICA Annual Report 2017: https://www.jica.go.jp/english/publications/reports/annual/2017/c8h0vm0000bws721 - att/2017_glanc e.pdf ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 4 Efforts toward Achieving the SDGs Strategy toward Achieving the SDGs JICA will play a catalytic role for cooperating with domestic and foreign development partners, mobilizing the private sectorâs technical and financial resources, developing innovations, and extending effective approaches at the global level by focusing on the strategies below . Source : JICAâs Position Paper â Toward Achieving Sustainable Development Goals (SDGs ) â 1. Securing and expanding the impact of cooperation 2. Reaching the specific needs of the people on the field 3. Strengthening cooperation with multiple stakeholders 4. Maximizing synergy effect with SDGs actions in Japan and overseas Goals that JICA considers necessary means of implementation Goals that JICA approaches as core development areas ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 5 Goals to which JICA contributes through comprehensive response Goals to which JICA plays a key role Managing Environment & Social Risks Impact Assessment Basic Principles If re
6 quired Application of the ESC Guidelines
quired Application of the ESC Guidelines Categories A B FI* C Mandatory ï Environmental Impact Assessment ï Resettlement Action Plan ï Indigenous Peoples Plan ï Information disclosure and consultations with stakeholders Disclose the results of - Environmental Impact Assessment - Resettlement Action Plan - Indigenous Peoples Plan before the Review Disclose the results of - Environmental Impact Assessment - Resettlement Action Plan - Indigenous Peoples Plan JICA discloses the results of the Environmental Review During implementation, the partner countries are required to: ï Monitor the ESC activities ï Report the monitoring results to JICA JICA discloses the results of Environmental Monitoring Respect human rights for inclusive development Avoid adverse impacts ESC Prerequisite Society ï° Resettlement, migration, and urbanization ï° Unfair distribution of benefits ï° Impacts on vulnerable populations ï° Impacts on community health & safety ï° Impacts on or caused by labor environment ï° Impacts on social structures, social infra and social services ï° Impacts on cultural heritage Environment ï° Pollution ï° Biota & Ecosystems ï° Trans - boundary or global impacts ESC disclosure to public Standards and References Planning JICAâs review Implementation Implementation Agreement ï° Host countryâs laws, standards, policies & plans ï° World Bankâs safeguard policies ï° Internationally accepted standards Source: JICA Website https ://www.jica.go.jp/english/our_work/social_environmental/guideline/pdf/guideline100326.pdf https://www.jica.go.jp/english/our_work/climate_change/index.html *FI=Financial Intermediary,
7 which in turn implements sub - projects
which in turn implements sub - projects that may have adverse impacts on the environment or society, b ut these impacts cannot be identified in detail prior to JICAâs approval. ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Comprehensive Approach to Environmental and Social Considerations (ESC) 6 * As of mid - December 2017 Succeeding debt obligation (after completion of the project) Government of Nigeria Gates Foundation ODA Loan Polio Eradication Project Country: Nigeria Agreement Date: May 2014 Loan Agreement Amount: JPY 8,285 million (USD 82.9 million) Use of the Loan ï° Approximately 460 million polio vaccine doses were procured with the funds from 2015 to 2017 Project Highlight : ï° Aiming polio eradication in one of the only three countries in the world where polio is endemic (Other two being Pakistan and Afghanistan) ï° Collaboration with the Bill & Melinda Gates Foundation ï° Gates Foundation to assume debt obligation after completion of the project in place of the Government of Nigeria Repayment Recent Development ï° The number of cases of polio decreased, demonstrating a tangible improvement in the countryâs efforts to eradicate polio ï° In addition to providing the loan, JICA has sent experts specialized in public health sector support to Nigeria in 2015 who proposed policy implementation of regular vaccination services in the country ï° JICA has also coordinated training sessions in Japan for Nigerian polio researchers to provide a comprehensive support to achieve polio eradication ï° Th
8 e Gates Foundation succeeded the debt o
e Gates Foundation succeeded the debt obligation in December 2017 Year 2012 2013 2014 2015 2016 2017* Number of Cases 122 53 6 0 4 0 (photo: UNICEF) Source: JICA website: https://www.jica.go.jp/english/news/press/2014/140527_01.html https://www.jica.go.jp/english/news/press/2017/171221_02.html Case Study ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 7 Case Study Dedicated Freight Corridor Project (Procurement of Electric Locomotives) Country: India Agreement Date: September 2017 Loan Agreement Amount: JPY 108.5 billion (USD 1.08 billion) Use of the Loan ï° To strengthen a transportation network by procuring 200 electric locomotives for freight corridor that connects Delhi and Mumbai Background ï° A large increase in the transportation volume of container freight, agricultural products and mineral resources is expected along the interval connecting Delhi and Mumbai. ï° Yet the current transportation capacity can only serve approx. 50% of the freight volume expected in 2032. Objectives ï° To introduce high - output, high speed locomotives on the dedicated freight railway - to increase the transportation capacity and make the logistics network more efficient , the reby contributing to better connectivity between industrial centers and strengthening industrial competitiveness ï° The project is scheduled to be completed in 2025 . Source: JICA website: https://www.jica.go.jp/english/news/press/2014/140527_01.html JICA website: https://www.jica.go.jp/english/news/press/2017/171221_02.html https://www.jic
9 a.go.jp/india/english/office/topics/pres
a.go.jp/india/english/office/topics/press170915_02.html https://www2.jica.go.jp/ja/evaluation/pdf/201z7_ID - P261_1_s.pdf (Japanese) Between Dadri and Mumbai Number of freight trains (Daily, both ways) Number of hours required 2007 (Base year) 303 59 2027 (2 year after completion ) 1,977 24 Expected Impact In addition to locomotives, JICA also supports related construction works currently in progress and to be completed in 2025 ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 8 Development of JICA October 2008 October 1999 March 1961 Bond Issuing Account Japan International Cooperation Agency Japan Bank for International Cooperation (JBIC) Japan Finance Corporation (JFC) Ministry of Foreign Affairs Established: August 1974 (1) Established: March 1961 Note (1) JICA was reorganized into an Incorporated Administrative Agency in October 2003. Note (2) The Ministry of Foreign Affairs continues to directly implement a part of Grant Aid needed for diplomatic policy. Technical Cooperation Grant Aid (2) Japan Bank for International Cooperation (JBIC) Spin off in April 2012 Overseas E conomic C ooperation Operations Finance and Investment Account General Account Japan International Cooperation Agency (JICA) Overseas Economic Cooperation Fund (OECF) Finance and Investment International Financial O perations Export - Import Bank of Japan ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 9 1. 71 trillion JPY
10 Three Main Arms of Operations Delhi Mas
Three Main Arms of Operations Delhi Mass Rapid Transport System Project in India ï® ODA Loans Sovereign - based lending with concessional conditions (similar to development finance provided by Multilateral Development Banks) to finance development projects. ï® Private - sector Investment Finance Lending or equity investment to private - sector entities. ï® JICA supports human resources development, R&D, technology dissemination and the improvement of institutional frameworks required to advance economic and social development in recipient countries. ï® JICA offers assistance in the form of grants with no repayment obligations to provide the goods and services necessary for economic and social development in developing countries. * Finance and Investment Technical Cooperation Grant Aid Assistance in agricultural production in Uganda Rural water supply in Ethiopia ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix 10 JFY201 9 Budget 82% 9% 9% Finance and Investment: 1,395 bn JPY (13.9 bn USD) Technical Cooperation: 151 bn JPY (1.5 bn USD) Grant Aid: 163 bn JPY (1.6 bn USD) Finance and Investment Activities â Schemes (Borrower) Government or Government institution with government guarantee Concessional Lending in JPY/USD (Re)payments in JPY/USD (allowed in USD for qualified borrowers) Investment in public work projects for development purposes Lending or investment equity denominated in JPY, USD or EM currencies Private sector - oriented (or PPP - based) investment for develo
11 pment purposes Outstanding amount as of
pment purposes Outstanding amount as of March 2019: 1 2,575 bn JPY ( 126 bn USD) Outstanding amount as of March 2019: 116 bn JPY (1.2 bn USD) Private sector entity operating in developing countries ï® Sovereign - based lending to developing countries with highly concessional terms ï® Lending denominated in JPY but some qualified borrowers allowed to choose either JPY or USD for principal/interest (re)payment ï® Lending or equity investment to private - sector entities operating in developing countries ï® Lending or equity investment denominated in JPY, USD or EM currencies ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix ODA Loans Private - sector Investment Finance 11 JFY 2018 Finance and Investment Activities ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Top 10 Borrower Countries (JFY 2018 new commitment amount base) Country bn JPY bn USD 1 India 537.4 5.37 2 Philippines 247.6 2.48 3 Bangladesh 201.1 2.01 4 Indonesia 70.0 0.70 5 Sri Lanka 40.7 0.41 6 Georgia 38.7 0.39 7 Iraq 37.3 0.37 8 Jordan 33.7 0.34 9 Uganda 18.6 0.19 10 Côte dâIvoire 16.1 0.16 JFY 2014 - 18 Commitment Amount (billion JPY) 12 Distribution by Sector (JFY 2018 new commitment amount base) Distribution by Region (JFY 201 8 new commitment amount base) 1,015.9 2,260.9 1,485.8 1,888.4 1,266.1 0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0 JFY2014 JFY2015 JFY2016 JFY2017 JFY2018 91% 6% 3% Asia Middle Ea
12 st Africa North and Latin America Pacifi
st Africa North and Latin America Pacific Others 76% 10% 4% 4% 3% 3% Transportation Electric Power and Gas Irrigation and Flood Control Program Loans Social Services Agriculture, Forestry and Fisheries JPY ODA Loan (33 Projects), USD ODA Loan (1 Project), and Private Sector Investment Finance (4 Projects) Southeast Asia South Asia Africa Latin America Black JPY Loan Red USD Loan Blue Private Sector Investment Finance Middle East JFY 2018 New Commitments Bangladesh Cambodia Uganda ï® Kampala Metropolitan Transmission System Improvement Project Sri Lanka ï® Phnom Penh City Transmission and Distribution System Expansion Project (Phase 2) (II) ï® West Tonle Sap Irrigation and Drainage Rehabilitation and Improvement Project(II) Iraq ï® Basrah Water Supply Improvement Project (II) ï® Irrigation Sector Loan (Phase 2) ï® Water Supply Improvement Project in Kurdistan Region (II) Georgia ï® East - West Highway Improvement Project (Phase2 ) Brazil ï® Amaggi Agri Supply Chain Enhancement Project Philippines ï® Jamuna Railway Bridge Construction Project (I) ï® Dhaka Mass Rapid Transit Development Project (Line 5) (E/S) ï® Dhaka Mass Rapid Transit Development Project (III) ï® Matarbari Port Development Project (E/S) ï® Matarbari Ultra Super Critical Coal - Fired Power Project (IV) ï® Health Services Strengthening Project ï® East - West Medical College & Hospital ï® New Bohol Airport Construction and Sustainable Environment Protection Project (II) ï® Metro Rail Transit Line 3 Rehabilitation Project ï® North - South Commuter Railway Extension Project ( I ) ï® Pasig - Marikina River Channel Improvement Project (Phase IV) Indonesia
13 ï® Construction of Jakarta Mass Rapid T
ï® Construction of Jakarta Mass Rapid Transit Project (Phase 2) (I) Jordan ï® Business Environment, Employment and Fiscal Sustainability Reform Development Policy Loan Côte dâIvoire ï® Project for the Construction of Three Intersections in Abidjan Palau ï® Palau International Airport Project Latin America and Caribbean ï® Fund: MGM Sustainable Energy Fund II·II ï® Health and Medical Service Improvement Project ï® Project for Establishment of Light Rail Transit System in Colombo (I) Disclaimer: Country borders or names do not necessarily reflect official endorsement or acceptance by JICA. This map is only for illustrative purposes and does not imply the expression of any opinion on the part of JICA, concerning the legal status of an y country or territory or concerning the delimitation of frontiers or boundaries. 13 India ï® Kolkata East - West Metro Project (III) ï® Project for Construction of Mumbai â Ahmedabad High Speed Rail (I) ï® Project for Renovation and Modernization of Umiam - Umtru Stage - III Hydroelectric Power Station ï® Delhi Mass Rapid Transport System Project Phase 3 (III) ï® Project for Sustainable Catchment Forest Management in Tripura ï® North East Road Network Connectivity Improvement Project (Phase 3) (I) ï® Project for Construction of Mumbai â Ahmedabad High Speed Rail (II) ï® Project for the Construction of Turga Pumped Storage (I) ï® Chennai Metro Project ( Phase 2) ( I ) ï® Project for the Dairy Development ï® Program for Japan - India Cooperative Actions towards Sustainable Development Goals in India ï® Project for the Construction of Chennai Peripheral Ring Road (Phase 1) 2017: 1.89 tr
14 illion JPY 2018: 1.27 trillion JPY 14 ï
illion JPY 2018: 1.27 trillion JPY 14 ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Contribution to the SDGs through JFY 2017 - 18 New Commitments * Expected contribution to the SDGs is identified through ex - ante evaluation conducted by JICA. ** For projects identified as contributive to more than one SDGs, commitment amount is divided equally across the identified SDGs by the number of Goals. Bengaluru Water Supply and Sewerage Project (Phase 3) (I) (JFY 2017) Bien Hoa City Drainage and Wastewater Treatment Systems Project (1) (JFY 2017) Water Supply and Sewerage Development Project in the West Zone of Metro Manila (JFY 2017) Water Supply Improvement Project in Kurdistan Region (II) (JFY 2018) Olkaria I Units 1, 2 and 3 Geothermal Power Plant Rehabilitation Project (JFY 2017) Hydropower Plants Rehabilitation Project (JFY 2017) Dhaka Underground Substation Construction Project (JFY 2017) Phnom Penh City Transmission and Distribution System Expansion Project (Phase 2) (II) (JFY 2018) Mumbai Metro Line 3 Project (II) (JFY 2017) Patimban Port Development Project (I) (JFY 2017) Hoa Lac Science and Technology City Development Project (1) (JFY 2017) North - South Commuter Railway Extension Project (I) (JFY 2018) Loan for the International Development Association 18 Replenishment (JFY 2017) Loan for the African Development Fund Fourteenth Replenishment (JFY 2017) Fiscal, Social and Economic Reform Development Policy Loan (JFY 2017) Program for Japan - India Cooperative Actions towards Sustainable Development Goals in
15 India (JFY 2018) Project samples from J
India (JFY 2018) Project samples from JFY 2017 - 2018 India Viet Nam Philippines Iraq Kenya Myanmar Bangladesh Cambodia India Indonesia Viet Nam Philippines IDA ADF Mongolia India Distribution by Expected Contribution to the SDGs (Commitment amount base)** 3% 6% 6% 3% 51% 7% 3% 12% 3% 1 No Poverty 2 Zero Hunger 3 Health 4 Education 5 Gender Equality 6 Water and Sanitation 7 Energy 8 Economic Growth 9 Infractructure and Industry 10 Reduced Inequalities 11 Sustainable Cities 13 Climate Actions 14 Oceans 15 Forests and Biodiversity 16 Peace and Governance 17 Partnerships Unable to categorize Collaboration with Other Development Agencies World Bank JICA IDB Mar 2018 ï° Gounghin â Fada NâGourma Road Improvement Project ï¼ Enhancement of regional transportation network ï° Country: Burkina Faso ï° Amount: USD 52mn (JPY 5.7bn) Co - financer - AfDB AFD Jan 2015 ï° Amu - Bukhara Irrigation Rehabilitation Project ï¼ Provides a stable supply of water for irrigation to farms and reduce the power consumption of the rehabilitated facilities by replacing existing pump stations on main irrigation channels in the Amu - Bukhara irrigation system ï° Country: Uzbekistan ï° Amount: USD 119mn (JPY 11.9bn) Co - financer - World Bank & AFD Co - financer - ADB Mar 2017 ï° Laguna Colorada Geothermal Power Plant Construction Project (Second Stage) ï¼ Contributes to diversification of the energy matrix and mitigate the impact of climate change ï° Country: Bolivia ï° Amount: USD 570mn (JPY 57.0bn) Co - financer - IDB JICA partners with bilateral and multilateral development agencies including AFD, IDB, KfW , World
16 Bank and ADB in order to maximize the
Bank and ADB in order to maximize the impact of cooperation efforts Co - financer - KfW Mar 2010 ï° Olkaria I Unit 4 and 5 Geothermal Power Project ï¼ Provides funds to expand the existing Geothermal Power Station by installation of power generator, 140MW in total in Rift Valley Province of Kenya ï° Country: Kenya ï° Amount: USD 295mn (JPY 29.5bn) KfW Source: https ://www.jica.go.jp/english/news/press/2015/150817_01.html https://www.jica.go.jp/english/news/press/2017/180316_01.html https://www.jica.go.jp/english/news/press/2014/150127_01.html https ://www.jica.go.jp/english/news/press/2014/150326_01.html ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix AfDB ADB Mar 2015 ï° Support Program to Respond to Climate Change(V) ï¼ Supports countermeasures against climate change by the Government of Vietnam through financial support and policy dialogue. ï° Country: Vietnam ï° Amount: USD 125mn (JPY 12.5bn) 15 Comparison with Peer Institutions Capital Japanese Government 100% French Government 100% German Federal Government 80% German Federal States 20% Japan 15.6% U.S. 15.6% PR China 6.4% and others (4) U.S. 15.66% Japan 7.87% PR China 4.36% and others (5) U.S. 10.19% Japan 8.34% U.K. 6.57% and others (6) Approx. Annual Commitment JPY 1,266.1 bn (eq. USD 11.5 bn ) EUR 11.4bn (eq. USD 13.2 bn ) EUR 10.6 bn (eq. USD 12.2 bn ) USD 21.6 bn USD 23.2 bn USD13.8 bn As of March 2019 December 2018 December 2018 December 2018 June 2019 June 2019 JICA has been maintaining a high capital ratio while keeping
17 a high level of annual commitment equiva
a high level of annual commitment equivalent to that of peer institutions (1) For Finance and Investment Account (2) AFD and Proparco : https ://www.afd.fr/sites/afd/files/2019 - 05 - 05 - 36 - 15/afd - registration - document - 2018.pdf (3) KfW Group:https :// www.kfw.de/PDF/Download - Center/ Finanzpublikationen /PDF - Dokumente - Berichte - etc /1_Geschäftsberichte/KfW_Finanzbericht_2018 - 2.pdf Annual commitment is based on activities under âPromotion of developing countries and emerging economies â (4) ADBâs share of voting power as of December 31, 2018 (5) IBRDâs share of voting power as of August 16, 2019 (6) IDAâs share of voting power as of June 30, 2019 Note: Capital Ratio = Capital / Assets Exchange rate used: USD/JPY=110, EUR/USD=1.15 Source: prepared by JICA based on the annual reports and other materials published by each organization 16 ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Bilateral Aid Agencies Multilateral Aid Agencies 11.5 13.2 12.2 21.6 23.2 13.8 77.1% 16.7% 6.2% 26.6% 14.9% 86.4% 0.0 5.0 10.0 15.0 20.0 25.0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% JICA AFD KfW ADB IBRD IDA Annual Commitment(Bn USD) Capital Ratio JICA (1) AFD (2) KfW (3) ADB IBRD IDA 1,395.0 bn JPY Finance and Investment Account â Funding Plan JFY2019 JFY2019 (USD) Contribution from the government 46.8 bn 0.5 bn Fiscal Investment and Loan Program (FILP) 549.2 bn 5.5 bn Borrowing from FILP 485.2 bn 4.9 bn Government - guaranteed bonds (USD) 64.0 bn 0.6 bn FILP Agency Bonds (JPY) 80.0 bn 0
18 .8 bn Own funds, etc. 719.0 bn 7.2 bn
.8 bn Own funds, etc. 719.0 bn 7.2 bn Total 1,395.0 bn 14.0 bn Source ï¼ JICA: https:// www.jica.go.jp/english/ir/financial/information_01.html Note : Numbers less than a hundred million yen have been rounded off . *The payment of principal and interest in respect of Government - guaranteed bonds are unconditionally and irrevocably guaranteed by the Government of Japan. **FILP Agency Bonds: bonds issued under Japanese Governmentâs Fiscal Investment and Loan Program (FILP), without explicit gov ern ment guarantee. Selected agencies including JICA, JBIC, DBJ, etc., issue bonds under this program. ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix The scale of Finance and Investment activities is on a rise â To fulfill the funding requirement, JICA receives contribution and borrowing from the Japanese government, and raise fund through capital market by issuing Government - guaranteed bonds* and FILP Agency bonds**. 17 5% (64.0 bn JPY) 6% (80 bn JPY) 51% (719.0 bn JPY) 35% (485.2 bn JPY) 3% (46.8 bn JPY) Government-guaranteed bonds (USD) FILP Agency bonds (JPY) Own funds, etc. Borrowing from FILP Contribution from the government Track Record â Bond Issuance ï® JICA issued its first FILP Agency bonds in the domestic market in December 2008. ï® JICA is recognized as one of the major bond issuers in the Japanese market, its bonds serving as the benchmark for the government agency sector. The outstanding amount is JPY 580 billion (eq. USD 5.8 billion ) as of March 2019. ï® For JFY 2019, JICA plan
19 s to issue up to JPY 80 billion. No. Is
s to issue up to JPY 80 billion. No. Issue Date Format Volume Issue Price MS Spread Coupon Tenor 1 Nov - 14 Reg S USD 500mn 99.588 +17bps 1.875% 5 Years 2 Oct - 16 SEC - registered USD 500mn 99.580 +59bps 2.125% 10 Years 3 Apr - 17 SEC - registered USD 500mn 99.480 +61bps 2.750% 10 Years 4 Jun - 18 SEC - registered USD 500mn 100.000 +41bps 3.375% 10 Years No. Issue Date Volume Issue Price JGB Spread Coupon Tenor 43 Dec - 1 7 JPY 20bn 100.00 + 4.5bps 0.625% 20 years 44 Jun - 18 JPY 15bn 100.00 +17.0bps 0.200% 10 years 45 Jun - 18 JPY 20bn 100.00 +5.5bps 0.559% 20 years 46 Sep - 18 JPY 20bn 100.00 +6.0bps 0.664% 20 years 4 7 Dec - 18 JPY 15bn 100.00 +5.5bps 0.636% 20 years 48 Jun - 19 JPY 10bn 100.00 +18.0bps 0.059% 10 years 49 Jun - 19 JPY 10bn 100.00 +6.5bps 0.333% 20 years ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix FILP Agency Bonds (JPY) Government - guaranteed Bonds (USD) ï® JICA is one of the three agencies qualified to receive Japanese government - guarantee for offshore issuance, along with Development Bank of Japan (DBJ) and Japan Bank for International Cooperation (JBIC). ï® JICA plans to issue USD 500 million in JFY 2019. 18 Finance and Investment Account â Financial Statement Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Balance Sheet (as of March 31, 2
20 019) (Unit: billions of JPY unless othe
019) (Unit: billions of JPY unless otherwise stated) Statement of Income (Unit: billions of JPY unless otherwise stated) 19 JPY USD JPY USD Loans 12,300.4 123.1 bn Borrowings from FILP 2,037.4 20.4 bn Allowance for loan losses - 165.8 - 1.7 bn Bonds 800.2 8.0 bn Investment securities 6.0 0.1 bn Provision for contingent losses 9.3 0.1 bn Shares of affiliated companies 44.1 0.4 bn Others 40.7 0.4 bn Money held in trust 40.8 0.4 bn Total liabilities 2,887.6 28.9 bn Claims probable in bankruptcy, rehabilitation, and others 87.1 0.9 bn Government investment 8,083.4 80.9 bn Allowance for loan losses - 83.2 - 0.9 bn Reserve fund 1,626.1 16.3 bn Others 401.7 4.1 bn Others 33.8 0.3 bn Total assets 12,630.9 126.4 bn Total net assets 9,743.30 97.4 bn Capital Ratio (net assets / assets ) 77.14% JFY2016 JFY2017 JFY2018 JFY2018 (USD) Ordinary revenues Interest on loans 152.8 145.3 138.2 1382 mn Dividends on investments 13.6 19.3 20.9 209 mn Reversal of provision for allowance for loan losses and contingent losses 2.6 2.5 1.3 13 mn Others 4.5 6.2 7.3 73 mn Total ordinary revenues 173.5 173.3 167.7 1677 mn Ordinary expenses Interest on borrowings 18.6 17.1 16.5 165 mn Interest on bonds and notes 6.1 7.3 9.3 93 mn Provision for allowance for loan losses 22 8.2 1.8 18 mn Others 52.4 61.3 62.3 623 mn Total ordinary expenses 99.1 94.0 89.9 899 mn Extraordinary income and loss 0 0 0 0 mn Total income for the current period 74.4 79.2 77.8 778 mn What is ODA? JBIC NEXI (export insurance) etc. Japanese Economic Cooperation ODA Other Official Flows (OOF) (cooperation through public funding other than ODA) Private sector, non -
21 profit organizations (NGOs), etc. Multi
profit organizations (NGOs), etc. Multilateral Assistance (Contributions to the United Nations, World Bank, etc. ) Technical Cooperation Grant Aid Finance and Investment Bilateral Assistance ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Japanese ODA and JICA Definition of ODA is provided by the Development Assistance Committee (DAC) of the Organization for Economic Co - operation and Development (OECD). Definition 1 To be undertaken by governments or government agencies Definition 2 To promote economic development and welfare in developing countries as the main objective Definition 3 Loan must have highly concessional financial terms Official Development Assistance 20 Japanese Development Cooperation Charter Contributing to peace and prosperity through cooperation for non - military purposes 1 Promoting human security 2 Cooperation aimed at self - reliant development through assistance for self - help efforts as well as dialogue and collaboration based on Japanâs experience and expertise 3 âQuality growthâ and poverty eradication through such growth Taking advantage of Japanâs own experience, expertise and technology to realize inclusive, sustainable, and resilient growth 1 Sharing universal values and realizing a peaceful and secure society Solidifying the foundations for development by establishing the rule of law, good governance, democracy and respect for basic human rights including womenâs rights, and also by contributing to peacebuilding, emergency humanitarian relief, and to fight against threats to s
22 tability and security 2 Building as sus
tability and security 2 Building as sustainable and resilient international community through efforts to address global challenges Taking full account of the discussions regarding international development goals including SDGs 3 ï® Japanâs Development Cooperation Charter was approved by the Cabinet in 2015 to set the guidelines for development cooperation activities for not only public agencies but all participants in tackling ever more diverse and complex development challenges ï® The proceeds from JICA bonds are entirely applied to Japanâs development cooperation based on the Basic Policies and Priorities as set out below ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Priority Issues Basic Policies 21 JPY 98.5 bn JPY 98.5 bn JPY 190.0 bn JPY 190.0 bn JFY 2018 General Account Activities Technical Cooperation Grant Aid Note: Figures based on expenses excluding management expenses of JFY2018 ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Note: Figures based on Grant Agreement of JFY2018 22 39% 27% 19% 7% 4% 3% 1% Asia Others Africa North and Latin America Middle East Pacific Europe 23% 11% 11% 8% 47% Public Works and Utilities Agriculture, Forestry and Fisheries Human Resource Development Planning and Administration Others 42% 36% 10% 8% 4% Asia Africa North and Latin America Pacific Middle East 57% 12% 9% 9% 5% 8% Public Works and Utilities Human Resources Health and Medical Service
23 s Agriculture, Forestry and Fisheries En
s Agriculture, Forestry and Fisheries Energy Others General Account Financial Statements Technical Cooperation JFY 2017 J FY 2018 J FY 2019 JFY 2019 (USD) Revenues Revenues from management grants 150.3 149.8 150.5 1,505 mn Other revenues 0.9 2.7 6.0 24 mn Total 151.2 152.5 156.5 1,565 mn Expenditures Administrative expenses 9.3 9.6 9.1 91 mn Operational expenses 141.3 141.9 145.3 1,453 mn Other expenses 0.7 1.0 2.1 21 mn Total 151.2 152.5 156.5 1,565 mn Grant Aid** JFY 2017 J FY 2018 J FY 2019 JFY 2018 (USD) Operation scale Total 163.1 160.5 163.1 1,631 mn Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. * All figures are based on budget for the fiscal year. ** Inclusive of budget for operations implemented by the Ministry of Foreign Affairs JPY USD Total assets 286.2 bn 2,862 mn Total liabilities 231.2 bn 2,312 mn Total net assets 55.0 bn 550 mn JFY 2017 JFY 2018 JFY 2017 (USD) Ordinary revenues 227.7 238.5 2,385 mn Ordinary expenses 238.2 247.5 2,475 mn Others 14.8 12.3 123 mn Total income for the current business year 4.3 3.2 32 mn ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Budget â Scale of Operations* (Unit: billions of JPY unless otherwise stated) Balance Sheet (as of March 31, 2019) Statement of Income (Unit: billions of JPY unless otherwise stated) 23 Terms and Conditions of ODA Loans (effective from October 1, 2018) Category GNI Per Capita (2016) Terms Fixed/ Variable Standard/Option Interest Rate (%) Repaym
24 ent Period (years) Grace Period (year
ent Period (years) Grace Period (years) Conditions for Procurement Least Developed Countries and Low - Income Countries Low - Income Least Developed Countries (1) 0.01 40 10 Untied - US $ 1,005 STEP(2) Fixed Standard 0.10 40 12 Tied Preferential Terms for high Specification (3) Fixed Standard 0.25 30 10 Untied Preferential Terms(4) Floating Standard ¥ Libor+25bp 30 10 Fixed Standard 0.85 30 10 General Terms Floating Standard ¥ Libor+35bp 30 10 Fixed Standard 0.95 30 10 Lower - Middle - Income Countries US$ 1,006 - US$ 3,955 STEP(2) Fixed Standard 0.10 40 12 Tied Preferential Terms for high Specification (3) Fixed Standard 0.50 30 10 Untied Preferential Terms(4) Floating Standard ¥ Libor+65bp 30 10 Fixed Standard 1.25 30 10 General Terms Floating Standard ¥ Libor+85bp 30 10 Fixed Standard 1.45 30 10 Upper - Middle - Income Countries) US$ 3,956 - US$12,235 Preferential Terms for high Specification (3) Fixed Standard 0.70 30 10 Untied Preferential Terms(4) Floating Standard ¥ Libor+85bp 30 10 Fixed Standard 1.45 30 10 General Terms Floating Standard ¥ Libor+105bp 30 10 Fixed Standard 1.65 30 10 Consulting Services For consulting services, the interest rate will be minimal (0.01%) and the repayment, grace periods and conditions for procur eme nt will be the same as those for main components. Options for Program Type Japanese ODA Loans In case of co - financing, it is possible to apply the same repayment terms as co - financer's lending while maintaining the concessionality of Yen loans. 1 For Low - Income LDCs, the term and condition of 0.01% interest rate and 40 - year repayment period including 10 - year grace period are ap
25 plied, irrespective of sectors and field
plied, irrespective of sectors and fields. Three - year transition period will be granted to recipient countries that will m ove from the category of Low Income LDCs, and, during the period, the terms and conditions for Low - Income LDCs will be applied to the projects of the countries. 2 Special Terms for Economic Partnership (STEP) is extended to the projects for which Japanese technologies and know - how are subs tantially utilized, based on the recipient countries' request to utilize and transfer excellent technologies of Japan. Countr ies (except LDCs), which are eligible for tied aid under Arrangement on Officially Supported Export Credits issued by OECD, are eligible for STEP terms. 3 Preferential Terms for High Specification will be applicable to projects promoting quality infrastructure.The applicability of the terms will be decided on a case - by - case basis. 4 Preferential Terms are applied to the following sectors and fields: ( i ) Issues on Global Environmental and Climate Change, (ii) Health and Medical Care and Services, (iii) Disaster Prevention and Re duction, and (iv) Human Resource Development 5 The base rate of Floating Loan is the value of the 6 - month Japanese Yen LIBOR, and the fixed spread remains constant over the l ife of the loan. If the base rate plus fixed spread is lower than 0.1%, the interest shall be 0.1%. 6 Irrespective of the income category, the term and condition of 0.01% interest rate and 40 - year repayment period including 10 - ye ar grace period are applied to projects assisting recoveries from disasters, including Stand - by Emergency Credit for Urgent Reco very (SECURE). For Stand - by Emergency Credit for
26 Urgent Recovery (SECURE), the term and
Urgent Recovery (SECURE), the term and condition of 20 - year repayment period including 6 - year grace period, or 15 - year repayment period including 5 - year grace period are also available, in order to apply Currency Conversion Option. Notes For countries complying with ongoing IMF - supported programs or receiving grants from IDA, it is possible to modify the terms and conditions of the ODA Loans so as to meet the IMF's concessionality criteria. For General terms and Preferential terms, fixed interest rate for all countries (except Low - Income LDCs) will be revised on a re gular basis so that its concessionality will be equal to that of Floating interest rate. For Upper - Middle - Income Countries, Floating Term will be applied in principle, although Fixed Term could be applied. 24 Managing Risks ï® Since the majority of borrowers are governments of developing countries, sovereign risk constitutes a major part of the credit risk for JICAâs Finance and Investment operations. ï® As ODA Loans are provided based on the request from borrowers and in accordance with Japanâs foreign policy, JICAâs exposure can concentrate in a limited number of countries , causing difficulty of portfolio management. ï® ODA Loan portfolio is highly vulnerable to political and economic changes of borrowing countries especially because of its extended tenors. ï® By utilizing an internal credit rating system , JICA continuously reviews borrowersâ credits and reflects changes in its risk profile. ï® JICA self - assesses its asset portfolio in accordance with the Financial Inspection Manual prepared by Japanâs Financial Services Agency, in the same
27 manner as commercial banks in Japan are
manner as commercial banks in Japan are required to conduct. ï® Credit risk management above is reflected into write - offs and loan loss allowance in a proper manner. ï® JICA is enhancing its capacity to absorb interest rate risk by using capital injections from the Government of Japan, as well as carrying out interest rate swaps. In order to control counterparty credit risk of interest rate swaps transactions , the market value of swap transactions and credit worthiness of each counterparty are constantly assessed and collateralized when necessary. ï® Currency risk is hedged through cross currency swaps. ï JICA at a Glance ï JICAâs Sustainability Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix Risks related to ODA Loans ï® JICA uses many measures to avoid liquidity risk through management of its cash flows. This includes efforts to secure multiple sources of funds such as Agency Bonds and borrowing under Fiscal Investment and Loan Program. 25 Credit Risk Management Market Risk Management Liquidity Risk Management Risks Monitored Loans March 31, 2017 March 31, 2018 March 31, 2019 March 31, 2019 (USD bn ) Loans to Debtor in Legal Bankruptcy ï¼ ï¼ ï¼ ï¼ Past Due Loans 87 87 87 0.9 Loans in Arrears by 3 Months or more ï¼ ï¼ ï¼ ï¼ Restructured Loans 701 655 609 6.1 Total (A) 788 742 696 7.0 Balance of Loans Receivable (B) 11,749 12,092 12,387 123.9 A / B (%) 6.70% 6.14% 5.62% 5.62 % * Totals may not correspond to the sum of each item, as numbers less than a hundred million yen have been rounded off. ï JICA at a Glance ï JICAâs Sustainabil
28 ity Proposition ï Overview of JICA
ity Proposition ï Overview of JICA ï± Finance and Investment ï Financial Statement and Funding Plan ï Appendix ï® The Paris Club is an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced with bilateral - based public debts (including both ODA loans and non - ODA credits). As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situations, usually through IMF - supported programs, Paris Club creditors provide appropriate debt treatments to debtor countries in the form of: ï° Rescheduling (i.e., debt relief by postponement); or ï° Reduction in debt service obligations ï® In principle, rescheduling is applied to ODA Loans securing principal of their face value. Note ⦠Paris Club ⦠26 (Unit: billions of JPY unless otherwise stated) These materials were prepared solely for the purpose of providing information to investors, and they are not intended to soli cit subscriptions to or encourage purchases of bonds. Investors are advised to consider bond purchases only after a careful study of the details of the bond issue as described in the relevant explanatory documents provided by the issuer and in any other relevant and current materials they can obtain. A decision to purchase bonds is solely the responsibility of the invest or. Address TEL E - mail URL Nibancho Center Building 5 - 25, Niban - cho, Chiyoda - ku Tokyo 102 - 8012 Japan +81 - 3 - 5226 - 9279 fatcm@jica.go.jp http://www.jica.go.jp/english/ir/index.html Capital Markets Division Treasury, Finance and Accounting Department Japan International Co