JBIC signs second financing deal for US investment plan

2026-08-14

Japan Bank for International Cooperation (JBIC) said on the 14th it had signed a second loan agreement for the $550 billion (about 87 trillion yen) investment in the United States agreed in Japan-US tariff talks. Three companies, including Citigroup and JPMorgan Chase, will provide a total of $4.6 billion (about 730 billion yen) for the construction of two natural gas-fired power plants.

First US banks join

This is the first time US banks have joined financing for the investment in the United States. The three megabanks that took part in the first round had raised concerns about securing large amounts of dollars over the long term, and this time US banks with abundant dollar liquidity took the lead.

Project size around 12 trillion yen

The estimated total project size for the second round is about 12 trillion yen, roughly twice the first round. In the initial financing for this round, up to $2.3 billion will be invested in Pennsylvania in the eastern United States and up to $2.2 billion in Texas in the south. The funds will be lent to special purpose vehicles (SPVs) set up for each project.

SMR excluded this time

The second-round plan had also included small modular reactors (SMRs) for next-generation nuclear power plants, but they were excluded from the financing this time. Japan and the United States had not fully worked out issues such as compensation coverage in the event of an accident.

Breakdown of loan amount and guarantees

Because the loan agreement amount includes insurance premiums and fees, the amount actually reaching the two SPVs is expected to be around 500 billion yen. The lending ratio was not disclosed, but JBIC, Citigroup and JPMorgan each contributed one-third. Nippon Export and Investment Insurance (NEXI) provided guarantees for the contributions from Citigroup and JPMorgan, reducing loss risk.

The three companies will add to the loans whenever new funding needs arise as construction progresses. With US banks taking on private financing, concerns that dollar funding needed for development could stall have eased.

The two US banks each issued statements alongside the deal. Citigroup said the project 'embodies Citi's commitment to contributing to economic growth in both Japan and the United States.' JPMorgan said it is 'an effort that supports the promotion of mutual benefits between Japan and the United States and the promotion of economic growth.'

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