Japan considers foreign bank financing for US power projects
Foreign banks could join syndicated loans for US gas-fired power plants as Japan seeks to fulfil its US$550 billion investment and lending pledge.
- Japan is considering a plan to involve foreign banks in financing natural gas-fired power plants in the United States.
- This move is intended to help fulfil a large investment and lending commitment to the US, as Japanese megabanks may face a shortage of required US-dollar funding.
- The proposed structure would have foreign lenders join syndicated loans with the Japan Bank for International Cooperation (JBIC), with loan guarantees from Nippon Export and Investment Insurance (NEXI).
- US lenders Citigroup Inc. and JPMorgan Chase & Co. have been identified as potential participants in the financing arrangement.
Japan is considering bringing foreign banks into the financing of natural gas-fired power plants in the United States as part of the investment and lending commitment made to the US government under a bilateral tariff agreement, the Finance Ministry has announced.
The ministry disclosed the proposal in a post on X, formerly Twitter, on Sunday night.
Foreign lenders could join syndicated loans arranged with the government-backed Japan Bank for International Cooperation (JBIC), while Nippon Export and Investment Insurance (NEXI) could guarantee loans extended by those banks.
The option is being examined following concerns that Japan’s three megabanks may be unable to supply the large amount of US-dollar funding needed to deliver the pledge. Bringing in foreign banks “would make foreign-currency procurement smoother”, the ministry stated.
Media reports have identified Citigroup Inc. and JPMorgan Chase & Co. as US lenders expected to participate in the financing.
Under the tariff agreement reached in July 2025, Japan committed to providing investments and loans worth up to US$550 billion to the United States.
Gas-fired power plant construction was included in the second group of investment projects unveiled in March.
Together with the construction of next-generation nuclear power plants, the projects are expected to have a total value of up to US$730 billion.
[Copyright The Jiji Press, Ltd.]
