U.S. Banks Break Dollar-Funding Barrier with ¥730 Billion Co-Financing Deal
Citigroup and JPMorgan Chase have joined forces with Japan's government-backed financial institution, the Japan Bank for International Cooperation (JBIC), to co-finance $4.61 billion in natural gas power generation projects in Pennsylvania and Texas.
The funding, which totals approximately ¥730 billion, marks a significant milestone as it represents the first time major U.S. banks have participated as lenders in Japan's U.S. investment and financing scheme.
The loans provided by Citigroup and JPMorgan will be covered by insurance from Nippon Export and Investment Insurance (NEXI), mitigating a portion of the credit risk borne by private financial institutions.
This co-financing arrangement is part of the $550 billion U.S. investment and financing framework agreed upon by Japan and the United States as part of bilateral tariff negotiations.