Description of Japan Bank for International Cooperation

Exhibit 1*

Japan Bank for International Cooperation

This description of Japan Bank for International Cooperation is dated August 4, 2025 and appears as Exhibit 1 to its Annual Report on Form 18-K filed with the U.S. Securities and Exchange Commission.

*	JBIC’s financial information as of and for the fiscal years ended March 31, 2024 and 2025 in Exhibit 1 has been derived from its financial statements prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”).

THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF JAPAN BANK FOR INTERNATIONAL COOPERATION.

TABLE OF CONTENTS


FURTHER INFORMATION			2
JAPAN BANK FOR INTERNATIONAL COOPERATION			4
JBIC Operations			4
Recent Developments			6
OPERATING RESULTS FOR THE FISCAL YEARS ENDED MARCH 31, 2024 AND 2025			13
Overall Operations			13
Each Operation			14
BUSINESS			15
Missions			15
Government Control and Supervision			15
Overview of JBIC’s Operations			15
JBIC Operations			15
Non-performing Loans			22
Risk Management			23
MANAGEMENT			26
DEBT RECORD			27
FINANCIAL STATEMENTS			27

FURTHER INFORMATION

This document appears as an Exhibit to the Annual Report of Japan Bank for International Cooperation (“JBIC”) filed with the U.S. Securities and Exchange Commission (the “Commission”) on Form 18-K. Additional information with respect to JBIC is available in such Annual Report, in the other exhibits to such Annual Report and in amendments thereto. Such Annual Report, exhibits and other amendments may be inspected and copied at the public reference room maintained by the Commission at: 100F Street, N.E., Washington, D.C. 20549. Information regarding the operations of the public reference room can be obtained by calling the Commission at 1-800-SEC-0330 or, without charge, from JBIC by telephoning 813-5218-3304. Such Annual Report, exhibits and other amendments are also available through the Commission’s Internet website at http://www.sec.gov.

In this document, all amounts are expressed in Japanese Yen (“¥” or “yen”), except as otherwise specified. The spot buying rate quoted on the Tokyo Foreign Exchange Market on July 31, 2025 as reported by the Bank of Japan at 5:00 p.m., Tokyo time, was ¥149.39 = $1.00, and the noon buying rate on July 25, 2025 for cable transfers in New York City payable in yen, as reported by the Federal Reserve Bank of New York, was ¥147.77 = $1.00.

Unless otherwise specified, references in this document to “$” are to U.S. dollars.

References in this document to fiscal years are to the 12-month periods commencing on April 1 of the year indicated.

References in this document to “JBIC” are to “Japan Bank for International Cooperation.”

References in this document to the “JBIC Group” are to JBIC and its subsidiaries. As of March 31, 2025, JBIC had eight subsidiaries, JBIC IG Partners, Russia-Japan Investment Fund, L.P., JB Nordic Fund I SCSp, NordicNinja Fund II SCSp and four other companies.

References in this document to “JBIC Operations” are to “Japan Bank for International Cooperation Operations.” References in this document to “JBIC Operations” (i) prior to April 1, 2012 are to the JBIC Operations as conducted by the Predecessor, (ii) on or after April 1, 2012 until March 31, 2017 are to the JBIC Operations as conducted by JBIC and (iii) on or after April 1, 2017 are to the JBIC Operations as conducted by the JBIC Group.

References in this document to the “Predecessor” are to “Japan Finance Corporation.”

Figures in tables included in this document may not add up to totals due to rounding.

Except where otherwise specified, financial information as of and for the fiscal years ended March 31, 2024 and 2025 is presented on a consolidated basis.

JBIC’s financial information as of and for the fiscal years ended March 31, 2024 and 2025 in this document has been derived from its financial statements, submitted as Exhibit 2 hereto, prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Japanese GAAP differs from generally accepted accounting principles in other countries, such as the IFRS Accounting Standards as issued by the International Accounting Standards Board (the “IASB”), which we applied in preparing Exhibit 7, or generally accepted accounting principles in the United States.

JAPAN BANK FOR INTERNATIONAL COOPERATION

Pursuant to the Japan Bank for International Cooperation Act (Act No. 39 of 2011), as amended (the “JBIC Act”), which was passed into law on April 28, 2011, on April 1, 2012 and subsequently amended on May 30, 2014 by Law No. 44 of 2014 and June 27, 2014 by Law No. 91 of 2014, the Predecessor spun off two of its operations: (i) the JBIC Operations and (ii) the Financial Operations for Facilitating Realignment of United States Forces in Japan (the “Financial Operations for Facilitating Realignment of United States Forces in Japan”). Effective the same date, the JBIC Operations and the Financial Operations for Facilitating Realignment of United States Forces in Japan were transferred out of the Predecessor to establish Japan Bank for International Cooperation (“JBIC”), a joint-stock corporation wholly owned by the Japanese government.

Pursuant to the JBIC Act, on April 1, 2012, all of the assets and liabilities relating to the JBIC Operations and the Financial Operations for Facilitating Realignment of United States Forces in Japan were assumed by JBIC. Upon the same date, with respect to bonds issued by the former Japan Bank for International Cooperation prior to the establishment of the Predecessor on October 1, 2008 and subsequently succeeded to by the Predecessor, JBIC and the Japan International Cooperation Agency, jointly and severally, assumed the obligations under such bonds. With respect to bonds issued by the Predecessor prior to the establishment of JBIC on April 1, 2012, the post-spin off the Predecessor and JBIC, jointly and severally, assumed the obligations under such bonds. The guarantee of the bonds by the Japanese government remains in effect under the same conditions and such bonds continue to rank senior in terms of payment to unsecured general obligations not represented by debt securities.

The Financial Operations for Facilitating Realignment of United States Forces in Japan were discontinued at the end of September 2012 based on the joint statement by the Japan-US Security Consultative Committee dated April 27, 2012. In accordance with Article 23 of the Special Measures Act, on November 30, 2012, the residual assets were paid to the national treasury, and the Financial Account Related to the Financial Operations for Facilitating Realignment of United States Forces in Japan was abolished.

As part of the Japanese government’s “Partnership for Quality Infrastructure” initiative in May 2015, the Act for Partial Amendment of the Japan Bank for International Cooperation Act (the “Act for Partial Amendment of the JBIC Act”) was enacted on May 11, 2016 to further support the overseas business expansion of Japanese companies by strengthening JBIC’s functions. Consequently, in October 2016, a new account for financing overseas infrastructure projects (“Special Operations”) was established separately from the account for JBIC’s existing operations (“Ordinary Operations”). In June 2017, together with Industrial Growth Platform, Inc., JBIC established its subsidiary, JBIC IG Partners, with the goal of providing support for foreign-directed investment funds.

JBIC Operations

Ordinary Operations

Pursuant to the JBIC Act, JBIC conducts the JBIC Operations to fulfill the following four missions in order to contribute to the sound development of Japan and the international economy and society: (a) promoting the overseas development and securement of resources which are important for Japan, (b) maintaining and improving the international competitiveness of Japanese industries, (c) promoting the overseas businesses having the purpose of preserving the global environment, such as preventing global warming, and (d) preventing disruptions to international financial order or taking appropriate measures with respect to damages caused by such disruption.

In order to execute the above missions, JBIC conducts the following seven principal operations by way of financing instruments such as loans, guarantees, acquisition and securitization of public/corporate bonds, assignment and securitization of loan assets and equity participations.

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Export Loans. For the purpose of promoting exports of Japanese plants and for the purpose of securing equally competitive conditions in terms of financing when Japanese exporters compete with other developed countries, export finance provides loans and guarantees of funds to importers and financial institutions to support exports of plants and technologies by Japanese companies mostly to developing countries. In particular, products such as power generation facilities, communication equipment, and marine vessels.

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Import Loans. For the purpose of securing a stable supply of resources for Japan, import finance provides loans and guarantees of funds to support imports of oil, LNG, iron ore, other rare minerals and other strategically important materials to Japan. Apart from natural resources, the guarantee facility supports imports of goods and services for which there are crucial domestic needs for the sound development of the Japanese economy, such as aircrafts.

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Overseas Investment Loans. For the purpose of promoting Japan’s overseas business activities, overseas investment finance provides loans and guarantees of long-term business funds to support foreign direct investments undertaken by Japanese companies, overseas Japanese affiliates and foreign governments or financial institutions that have equity participations in or provide loans to such overseas affiliates. The eligible purposes include local manufacturing, resource development and other business ventures.

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Untied Loans. Untied loans provide loans and guarantees of funds to support improvements in the overseas business environment or to stabilize their currencies to facilitate Japanese trade, investments and other overseas business activities by foreign governments and foreign government agencies. Untied loans also support projects that have a strong impact on preserving the environment.

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Bridge Loans. Bridge loans provide short-term financing for developing country governments facing balance-of-payments difficulties or other emergencies until international agencies can provide economic support funds.

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Equity Participations. Equity participations are equity investments in Japanese joint ventures conducting business overseas or overseas companies in which Japanese companies have invested for the purposes of a business tie-up, and equity investments in funds in which Japanese companies or international institutions participate.

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Research and Studies. JBIC conducts research and studies to support its operations.

Special Operations

The JBIC Act (Act No. 39 of 2011), which regulates JBIC’s financial operations, was amended as of May 18, 2016 with the object, inter alia, of enhancing JBIC’s capacity to finance overseas infrastructure projects through the newly established “Special Operations.” The amendment came into force starting October 1, 2016 together with relevant implementing decrees. JBIC is thereafter required to maintain separate accounts for the Ordinary Operations and the Special Operations to ensure transparency of both operations. From October 1, 2023, which the Act for Partial Amendment of Japan Bank for International Cooperation Act became effective in its entirety, development of energy and natural resources, commercialization of new technology and business models, and equity investments in startups are included in Special Operations. In line with the Japanese government’s initiative to promote development of quality infrastructure, the JBIC Group intends to leverage every tool at its disposal, including the Special Operations, to further mobilize the requisite funds to support private sector investment in infrastructure projects worldwide and to promote further risk-taking by Japanese companies.

The Special Operations enable JBIC to finance overseas projects with risks that JBIC is unable to assume under the Ordinary Operations. Under the Special Operations, JBIC considers projects that involve risks new to JBIC, to the extent that JBIC is in a good position to control or mitigate such risk throughout the tenor of the financing by way of close dialogue with the stakeholders such as the host-country government. As part of the due diligence for providing financing under the Special Operations, JBIC takes into account the credit policy of other financial institutions for comparable cases. JBIC also requires appropriate risk sharing among the parties involved and endeavors to mobilize adequate private funding to the relevant project.

Examples of projects under the Special Operations include finance for governments, government agencies or local governments with a risk profile that does not fall into the scope of the Ordinary Operations and finance for public-private partnerships with the principal cash-flow entailing the risk of fluctuations in demand.

Both the account for Ordinary Operations and the account for Special Operations are required to conduct sound and efficient operations based on the principle that expenditures should not exceed revenues (“sufficient revenues to cover expenditures”) according to the JBIC Act. The account for Ordinary Operations is additionally subject to the principle that repayment from the loans and the performance of the obligations under the guarantees should be ascertained (“certainty of repayment”).

Average Yield in the JBIC Operations

With respect to the account for Ordinary Operations, the average yield of loans made by JBIC was 5.65% as of March 31, 2025. With respect to the account for Special Operations, the average yield of loans made by JBIC was 5.28% as of March 31, 2025. The spread of each loan made by JBIC depends on the purpose of the loan, maturity date and the borrower.

As a general matter, JBIC currently makes loans at fixed or floating interest rates, based on the request of the borrower, regardless of the term of the loan.

Allowance for Loan Losses of the JBIC Operations

The JBIC Group provides an allowance for possible loan losses, pursuant to the relevant cabinet order and related regulations.

Allowance for loan losses is recognized in accordance with internally established standards.

The allowance for claims on debtors who are legally bankrupt (“bankrupt borrowers”) or substantially bankrupt (“substantially bankrupt borrowers”) is provided based on the outstanding balance after the write-offs described as below and the deductions of the amount expected to be collected through the disposal of collateral and the execution of guarantees. The allowance for claims on debtors who are not legally bankrupt but are likely to become bankrupt (“potentially bankrupt borrowers”) is provided based on an assessment of the overall solvency of the debtors after deducting the amount expected to be collected through the disposal of collateral and the execution of guarantees.

Of potentially bankrupt borrowers with restructured loans and others, (excluding foreign governments and other governmental entities) whose loans exceed a threshold amount, if it is possible to reasonably estimate cash flows from the collection of principal and the receipt of interest, the allowance for claims on such debtors is provided based on an approach whereby the difference between the amount of cash flows discounted by the original contractual interest rates and the carrying amount of the claims is determined to be the allowance for loan losses (the “cash flow estimation approach”).

The allowance for claims on debtors other than bankrupt borrowers, substantially bankrupt borrowers and potentially bankrupt borrowers is provided primarily in consideration of the expected loss amount over the average remaining periods of loans, and the expected loss amount is calculated primarily based on the probability of default which is based on the actual bankruptcies during a certain period in the past. The allowance for possible losses on specific overseas loans is provided based on the expected loss amount taking into consideration the political and economic situations of these countries.

All claims are assessed initially by the operational departments and subsequently by risk evaluation departments based on internal rules for self-assessment of asset quality. The risk evaluation departments, which are independent from the operational departments, review these self-assessments, and the allowance is provided based on the results of the assessments.

With respect to claims with collateral or guarantees on debtors who are legally or substantially bankrupt, the residual book value of the claims, after deducting, the amount which is deemed collectible through the disposal of collateral or the execution of guarantees is written off. There were no such amounts written off during the year ended March 31, 2025.

Although trade disputes affecting the global economy and uncertainties surrounding overseas markets persist in 2025, the global economic growth rate is expected to continue its moderate recovery. Currently, the allowance for loan losses is provided based on the assumption that the level of the credit risk of outstanding loans and other investments will be the same as the historical level for the near future, and is calculated based on the items including the probability of default that is based on the actual number of bankruptcies during a certain period in the past.

As the future outlook is uncertain, the ongoing Russian invasion of Ukraine, or its impact on the international situation, as well as the related economic impact, may differ significantly from the assumption above. In such a case, the allowance for loan losses may change going forward.

With regard to the ongoing Russian invasion of Ukraine, the governments of various countries, including the Government of Japan, have taken various measures such as economic sanctions against Russia. JBIC is closely monitoring the trends in sanctions imposed by governments and other entities with respect to Russia, including by reflecting the impact of the situation in Ukraine on JBIC’s loan loss reserves, by examining the impact of sanctions measures on the business and performance of borrowers in determining borrower classification, and assessing the impact on credit risk on a case-by-case basis.

Recent Developments

Amendment of the JBIC Act

On April 7, 2023, the National Diet of Japan enacted the Act for Partial Amendment of Japan Bank for International Cooperation Act. The amendment became effective in part on April 15, 2023 and in its entirety on October 1, 2023. In light of the changes in international conditions surrounding Japan’s economy, this Act enhances the scope of JBIC’s operations in the following areas:

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Strengthening resilience of the supply chain that contributes to maintaining and improving the international competitiveness of Japanese industries.

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Permit financing to foreign companies supporting Japanese companies’ supply chains and industrial bases.

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Permit import loans to be used for goods acquired overseas by Japanese companies.

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Permit financing to large Japanese domestic companies for uses relating to overseas businesses that are related to the resilience of Japanese companies’ supply chains.

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Supporting further risk-taking by Japanese companies, including start-ups, with a focus on growth areas such as digital and green business areas.

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Permit investments in and purchases of corporate bonds from domestic start-ups and small-and medium-sized enterprises engaged in overseas business.

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Expand the scope of the account for the Special Operations to include resource development, commercialization of new technologies and business models and investment in start-ups.

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Participation in Recovery Assistance to Ukraine through international cooperation

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Permit guarantees to international financial institutions to enable JBIC can guarantee loans to Ukraine made by international financial institutions.

In line with the amendment of this Act, JBIC formulated its Startup Investment Strategy and newly established a Startup Investment Committee as part of its efforts to strengthen its startup investment operations. JBIC will seek to connect Japan’s startup ecosystem with global startup ecosystems by investing in and supporting foreign startups collaborating with Japanese companies and Japanese startups expanding into global markets.

Updates to Approach to Sustainability

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Governance and Management Systems

JBIC has implemented initiatives to promote sustainability, including efforts for climate change, through the Sustainability Advisory Committee, the Sustainability Committee, and the Sustainability Management Department, established in June 2022, as part of JBIC’s efforts toward strengthening its sustainability governance and management systems as set out in JBIC’s ESG Policy. Under the supervision of multiple organs, including the Board of Directors, important matters related to sustainability, including those concerning climate change, are discussed at the Executive Committee, Sustainability Committee and Corporate Risk Management Committee.

Under its sustainability governance and management systems, JBIC strives to contribute actively to the realization of global sustainability, including sustainable development of the global economy and society and resolution of global issues. To that end, JBIC will provide proactive support for initiatives by Japanese corporations to promote the Sustainable Development Goals (the “SDGs”) and green transformation (GX) of the global economy and society, and ensure the appropriate disclosure and announcement of the outcomes of such initiatives to stakeholders.

The following graphic shows the organization of JBIC’s sustainability governance and management systems.

LOGO

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Strategies

In its Fifth Medium-term Business Plan announced in June 2024, the “JBIC Fifth Medium-term Business Plan (FY2024 – FY2026)”, which runs through the fiscal year ended March 31, 2026, JBIC identified “Realize a Sustainable Future” and “Strengthen Resilience of Japanese Industry and Support Creative Innovation” as key focus areas. Leveraging the global networks that it has long cultivated as a policy-based financial institution, JBIC intends to realize a sustainable future through achieving carbon neutrality and solving social issues of host countries in cooperation with various stakeholders and will also proactively support the development and implementation of innovative technologies and new businesses by deploying its risk-assuming functions, such as its Special Operations (including support for startups).

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Risk Management

JBIC recognizes the importance of managing risks related to climate change, and it has decided on a Climate Risk Management Policy in 2023. Based on this policy, JBIC has prepared a framework to identify, assess, and manage climate-related risks. JBIC recognizes climate-related risks as forward-looking risks that may materialize in different patterns and magnitudes, subject to future environmental and social circumstances, and which therefore need to be addressed through long-term, comprehensive perspectives. JBIC also understands that climate-related risks materialize over a variety of time horizons, both short and long term, and through a wide range of channels and touchpoints. Based on this recognition, JBIC has designated climate-related risks as one of its Top Risks (risk events that will significantly impact JBIC when they become apparent and require particular attention) in its enterprise risk management framework, and seeks to comprehensively manage these risks by monitoring the social and regulatory trends related to climate issues and changes in situations regarding fossil fuel projects.

In order to evaluate the impacts that climate change will have on JBIC’s portfolio in the future, JBIC conducts scenario analysis for climate-related transition risk and physical risk. JBIC conducts its analysis with external experts, using the NGFS’s climate scenarios in accordance with the TCFD’s recommendations, while supplementing with the available related data and estimations from climate scenarios issued by international organizations, such as the IEA and the IPCC, industry reports, and the Technology Roadmap for Transition Finance by the Ministry of Economy, Trade and Industry (METI).

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Metrics and Targets

In order to promote initiatives to achieve both decarbonization and sustainable economic growth, JBIC has set forth “the realization of a sustainable future” as one of the key focus areas in its Fifth Medium-Term Business Plan, and it has set the number of committed or structured projects that “contribute toward realizing both carbon neutrality and economic growth” as its metric. For this metric, JBIC has defined quantitative targets for each fiscal year and has been monitoring the status of achievement at the Executive Committee.

Establishment and Launch of Global Investment Enhancement Facility

On July 1, 2022, JBIC launched its new Global Investment Enhancement Facility, with a deadline for signing a financing agreement set for June 30, 2025. Similar to the Post-COVID-19 Growth Facility established on January 29, 2021, the Global Investment Enhancement Facility comprises two windows intended to support Japanese companies in (i) contribution toward preserving the global environment, including decarbonization (the “Sustainability Window”) and (ii) enhancement of supply chain resilience, the expansion of high-quality infrastructure and the creation of new overseas markets (the “Global Value Chain Resilience Window”).

Eligible projects and investments under the Sustainability Window include those that are expected to reduce greenhouse gas emissions, including those related to renewable energy, energy savings, green mobility solutions (such as a modal shift in transportation and electric vehicles), carbon dioxide capture and reduction, and low-carbon technologies and materials. The window also covers other projects that are expected to contribute toward preserving the global environment, including those related to air pollution prevention, water supply, water pollution prevention, waste disposal and measures to address marine plastic pollution. Overseas investment loans and import loans in connection with energy and natural resources finance, for projects relating to non-fossil energy sources, are also covered.

The Global Value Chain Resilience Window focuses on projects to provide funding for Japanese companies or their affiliates starting or expanding overseas business, or improving the efficiency of overseas businesses, including through investments or other business tie-ups with certain foreign companies, as well as energy and natural resources finance. The window also focuses on financing activities to support Japanese companies in the enhancement of supply chains, thereby serving to maintain and improve the international competitiveness of Japanese industry, and projects where a Japanese company’s technology or business model will be implemented, thereby contributing to creating a new market in the relevant region.

Bond Issuances

On April 17, 2024, JBIC issued $1.0 billion of 4.625% government guaranteed bonds due April 17, 2034. On May 28, 2024, JBIC issued ¥10 billion of 0.639% non-guaranteed domestic bonds due March 19, 2029. On July 22, 2024, JBIC issued $1.5 billion of 4.625% government guaranteed bonds due July 22, 2027. On October 17, 2024, JBIC issued €500 million of 2.625% government guaranteed bonds due October 17, 2030. On January 27, 2025, JBIC issued £350 million of 4.625% government guaranteed bonds due January 28, 2030. On July 3, 2025, JBIC issued $1.0 billion of 3.875% government guaranteed bonds due July 3, 2028. The bonds have been admitted to the official list of the Luxembourg Stock Exchange and are traded on the Luxembourg Stock Exchange’s Euro MTF Market.

Common Stock Issuance

On March 26, 2025, JBIC issued new shares of its common stock to the Japanese government for an aggregate issue price of ¥121.0 billion. The proceeds from the issuance will be used for strengthening JBIC’s financial foundation in order to support Japanese companies’ overseas business expansion including in the field of infrastructure.

Medium-term Business Plan

On June 27, 2024, JBIC announced its fifth medium-term business plan, titled the “JBIC Fifth Medium-term Business Plan (FY2024 – FY2026)”, which runs through the fiscal year ending March 31, 2027.

The current international situation is becoming even more uncertain as the world faces historical and structural changes and challenges, including Russia’s invasion of Ukraine, changes in relationship between developed countries and Global South countries, destabilization of the global financial environment due to inflation and increasing debt costs, and rebuilding of supply chains to ensure economic security in such areas as energy and foods. On the other hand, climate change remains an urgent issue for the international society, and it is crucial to make a breakthrough with innovative technology to achieve both decarbonization and sustainable economic growth.

JBIC has developed the Fifth Medium-term Business Plan (FY2024–FY2026) toward solving these issues. The plan sets one of the key focus areas as the realization of a sustainable future through achieving carbon neutrality, a global common challenge, and solving social issues of host countries in cooperation with various stakeholders. In addition, through the amendment to the JBIC Act in April 2023 to bolster its functions, JBIC will encourage creative innovation of Japanese industry by proactively supporting the efforts to ensure energy security, strengthen resilient supply chains, and develop innovative technologies and new businesses, including startups. Furthermore, JBIC will offer its own unique solutions by promoting multilateral cooperation and performing its risk-assuming functions, such as the Special Operations, thereby contributing toward the development and implementation of Japan’s foreign economic policies.

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Key Focus Area 1: Realize a sustainable future

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Action Plan (1): Contribute toward realizing both carbon neutrality and economic growth

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Support efforts for global green transformation (GX) and energy transition via diverse paths to carbon neutrality in host countries, by financing to projects in such areas as renewable energy and energy efficient projects, hydrogen and ammonia, carbon-recycling fuel, rechargeable batteries, resources recycling (circular economy), next-generation mobility, energy-saving building, energy transition and, CCS (Carbon dioxide Capture and Storage)/CCUS (Carbon dioxide Capture, Utilization and Storage).

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Action Plan (2): Contribute toward solving social issues in collaboration with host countries

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Support projects that will contribute toward solving the host country’s social issues toward sustainable growth, including development of medical environment (hospitals, medical devices, and medical networks), development of resilient basic infrastructures (water supply and sewerage, transportation, disaster prevention, rural electrification and distributed power supply, and telecommunication), improvement of hygienic environment (waste treatment and recycling), preservation and restoration of natural resources (including management of marine plastic waste), and securement of food security (food value chain).

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Action Plan (3): Implement responsible sustainability management

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Promote pioneering initiatives related to sustainability with a focus on climate change issues.

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Research, analyze, and report the advanced trends of wide range of sustainability issues (e.g., natural capital, human rights, and gender).

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Upgrade efforts including disclosure and transmission of information related to climate change risk management (transition risk and physical risk) and sustainability.

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Key Focus Area 2: Strengthen resilience of Japanese industry and support creative innovation

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Action Plan (4): Support securement of Japan’s energy security, strategic enhancement of the resilience of supply chains that contribute to national interest, and development of frontier industries

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Support strengthening of Japanese industry through providing assistance to projects that contribute to energy security in Japan, projects that enhance the resilience of global supply chains of Japanese industry, such as those for overseas capital investments and exports, and projects related to securing interests of or importing mineral resources, including base metals and critical minerals.

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Action Plan (5): Support development of innovative technologies and businesses

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Support creative innovation of Japanese industry through financing to startups (including effort to add value through engagements), projects in which Japanese companies invest for commercialization, and practical application of innovation, projects that focus on innovation-related risks such as technological risks and commercialization risks, mergers and acquisitions by Japanese companies with an eye on securing advanced technology and business, and projects invested in by a fund structured by JBIC IG.

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Action Plan (6): Support overseas expansion of globally active mid-tier enterprises (MTEs) and small- and medium-sized enterprises (SMEs)

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Support MTEs and SMEs that are active in global business through collaboration with private financial institutions such as regional banks, and by information dissemination.

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Key Focus Area 3: Provide JBIC’s own unique solutions by strategically functioning as an international financial institution

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Action Plan (7): Support projects which contribute toward developing and realizing Japan’s foreign economic policies

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Support initiatives that contribute toward developing and realizing Japan’s foreign economic policies which change with times, including promoting multilateral cooperation such as Japan-United States-Australia partnership and Quadrilateral Security Dialogue (QUAD), supporting Ukraine and its neighboring countries, strengthening collaboration with Global South countries, and promoting the Asia Zero Emission Community (AZEC).

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Action Plan (8): Provide own unique solutions through strategic information analysis

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Strengthen external communication and sophisticate JBIC’s operations and strategies through information-gathering and analysis functions.

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Key Focus Area 4: Reinforce and reform organizational base toward value creation

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Action Plan (9): Exercise human capital management

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Develop and introduce new HR strategy focusing on organizational challenges.

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Establish a human capital management system in which directors and staff members can maximize their abilities.

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Action Plan (10): Streamline operations through DX (digital transformation) and develop business promotion infrastructure

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Streamline operations and develop an infrastructure for operational promotion by further strengthening IT infrastructure, constantly reviewing operations, finding the best balance between the continuous review of operations and the utilization of cutting-edge technologies (including generative AI), through the agile utilization of such technologies.

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Action Plan (11): Build a highly engaged organization, reinforce and stabilize organizational base, and achieve efficient management

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Build an organization with high staff engagement through concrete organizational reforms directed by the management.

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Enhancement and stable, efficient operation of the organization’s core businesses that underpin value creation.

Addition of Consolidated Subsidiaries

JBIC has included JB Nordic Fund I SCSp and NordicNinja Fund II SCSp and other four companies in the scope of consolidation from the fiscal year ended March 31, 2025 due to a change in their status from affiliates.

OPERATING RESULTS FOR THE FISCAL YEARS ENDED MARCH 31, 2024 AND 2025

JBIC’s financial information as of and for the fiscal years ended March 31, 2024 and 2025 in this Exhibit 1 has been derived from its financial statements prepared in accordance with Japanese GAAP.

Overall Operations

Set forth below are the operating results of the JBIC Group for the fiscal year ended March 31, 2025:


	Year ended March 31,
	2025
	(In millions of yen)
Ordinary income	¥	1,028,875
Ordinary profit		82,683
Net income attributable to owner of parent		86,306
Total assets		20,464,753
Loans and bills discounted		15,414,487
Customers’ liabilities for acceptances and guarantees		1,325,383

During the fiscal year ended March 31, 2025, the JBIC Group’s operations consisted solely of Ordinary Operations and Special Operations. As Ordinary Operations represent the JBIC Group’s primary business, the JBIC Group’s operating results were substantially determined by the operating results of its Ordinary Operations, as further described in “Each Operation”.

Ordinary income for the fiscal year ended March 31, 2025 totaled ¥1,028,875 million, of which interest income amounted to ¥984,272 million.

Ordinary expenses for the fiscal year ended March 31, 2025 totaled ¥946,191 million. Interest expense, which amounted to ¥867,154 million and reflected interest expense for its borrowings and outstanding debt securities, accounted for the majority of these expenses.

For the fiscal year ended March 31, 2025, the JBIC Group recorded ordinary profit of ¥82,683 million and net income attributable to owner of parent of ¥86,306 million, and JBIC’s commitments, including guarantee, were ¥1,506 billion.

Set forth below are the operating results of the JBIC Group for the fiscal year ended March 31, 2024:


	Year ended March 31,
	2024
	(In millions of yen)
Ordinary income	¥	1,133,061
Ordinary profit		63,265
Net income attributable to owner of parent		62,342
Total assets		21,657,108
Loans and bills discounted		16,423,476
Customers’ liabilities for acceptances and guarantees		1,522,529

During the fiscal year ended March 31, 2024, the JBIC Group’s operations consisted solely of Ordinary Operations and Special Operations. As Ordinary Operations represent the JBIC Group’s primary business, the JBIC Group’s operating results were substantially determined by the operating results of its Ordinary Operations, as further described in “Each Operation”.

Ordinary income for the fiscal year ended March 31, 2024 totaled ¥1,133,061 million, of which interest income amounted to ¥1,022,058 million.

Ordinary expenses for the fiscal year ended March 31, 2024 totaled ¥1,069,795 million. Interest expense, which amounted to ¥902,748 million and reflected interest expense for its borrowings and outstanding debt securities, accounted for the majority of these expenses.

For the fiscal year ended March 31, 2024, the JBIC Group recorded ordinary profit of ¥63,265 million and net income attributable to owner of parent of ¥62,342 million, and JBIC’s commitments, including guarantee, were ¥2,037 billion.

Each Operation

Set forth below are the operating results of each operation of the JBIC Group for the fiscal year ended March 31, 2025:


	Year ended March 31, 2025
	Ordinary Operations		Special Operations			Eliminations			Total
	(In millions of yen)
Ordinary income	¥	1,025,090	¥	3,958		¥	(174	)	¥	1,028,875
Ordinary profit (loss)		83,063		(379	)		—			82,683
Net income (loss) attributable to owner of parent		86,685		(379	)		—			86,306
Total assets		20,129,425		335,366			(38	)		20,464,753
Loans and bills discounted		15,400,591		13,895			—			15,414,487
Customers’ liabilities for acceptances and guarantees^(a)		1,325,383		—			—			1,325,383

(a)	This is the amount of guarantee liabilities recorded in the JBIC Group’s balance sheet.

Ordinary income from Ordinary Operations for the fiscal year ended March 31, 2025 totaled ¥1,025,090 million, of which ¥983,148 million consisted of interest income. Ordinary expenses of Ordinary Operations for the fiscal year ended March 31, 2025 totaled ¥942,027 million, of which ¥866,537 million consisted of interest expense. As a result, for the fiscal year ended March 31, 2025, the Ordinary Operations recorded ordinary profit of ¥83,063 million and net income attributable to owner of parent of ¥86,685 million.

In Ordinary Operations, to contribute toward realizing both carbon neutrality and economic growth under the concept of “Realize a Sustainable Future”, JBIC supported a geothermal power expansion project in Indonesia, an ammonia production and sales business in the United Arab Emirates and electricity transmission and biofuel projects in Brazil through loans. In an effort to contribute to solving social issues in collaboration with host countries, JBIC provided loans for data center businesses in the U.S. and India, supported a Japanese company in acquiring a U.S.-based company engaged in CDMO (Contract Development and Manufacturing Organization) business, and financed another Japanese company’s acquisition of a business in Indonesia to enter the agricultural drone field. As part of our efforts to contribute to supporting securement of Japan’s energy security, strategic enhancement of the resilience of supply chains that contribute to national interest, and development of infrastructure in frontier industries—under the concept of “Strengthen Resilience of Japanese Industry and Support Creative Innovation”, JBIC provided loans to a copper mine expansion project in Chile, and to a Japanese company for the acquisition of an Australian company which designs, develops, and sells design software for printed circuit boards (PCBs) incorporating various electronic components, including semiconductors. In an effort to support development of innovative technologies and businesses, JBIC provided financing for the development of German 5G Network infrastructure with Open RAN technology and made an additional commitment to a fund investing in startups in northern Europe and central and eastern Europe. In addition, to support overseas expansion of mid-tier enterprises and SMEs that play active roles in global business, JBIC proactively provides various forms of support in the Global South and other countries by utilizing schemes such as local currency loans while cooperating with local financial institutions. Also, to support projects which contribute toward developing and realizing Japan’s foreign economic policies, under the concept of “Provide JBIC’s Own Unique Solutions by Strategically Functioning as an International Financial Institution”, JBIC signed a loan agreement for a credit line toward projects to support the reconstruction of Ukraine and provided financing for a Kenyan geothermal power plant project based on an export credit line with a regional development financial institution in Africa.

Ordinary income from Special Operations for the fiscal year ended March 31, 2025 totaled ¥3,958 million, of which ¥1,124 million consisted of interest income and ¥2,601 million consisted of gains on sales of equity and other securities. Ordinary expenses of Special Operations for the fiscal year ended March 31, 2025 totaled ¥4,338 million, of which ¥616 million consisted of interest expense and ¥2,186 million consisted of impairment losses on equity and other securities. As a result, for the fiscal year ended March 31, 2025, the Special Operations recorded ordinary loss of ¥379 million and net loss attributable to owner of parent of ¥379 million.

In the Special Operations, as part of our efforts to contribute to the realization of a carbon-free society, JBIC provided project financing for geothermal power generation and district heat supply project in Germany, which deploys a new technology.

For prior year data for Ordinary Operations and Special Operations, see the overall operating results for the fiscal year ended March 31, 2024, provided under “Overall Operations.”

BUSINESS

Missions

Government Control and Supervision

Under the JBIC Act, JBIC’s shares are wholly owned by the Japanese government, and JBIC is under the Japanese government’s control. JBIC’s operations, including appointment of directors, business plans and issuance of new debt securities, are supervised by the Minister of Finance. JBIC’s budgets are subject to approval of the Japanese Diet, and the annual financial statements of JBIC are required to be submitted to the Diet.

Overview of JBIC’s Operations

The Act for Partial Amendment of the JBIC Act was approved and enacted at the 190th ordinary session of the Diet on May 11, 2016. Consequently, a new “Special Operations” account was established in October 2016 from which JBIC can provide enhanced financing support for overseas infrastructure projects and activities for this account are accounted for separately from those of the Ordinary Operations account.

JBIC Operations

Outstanding Credit in the JBIC Operations

Due to the relative importance of JBIC’s credit commitments to the JBIC Group, as compared with those of its consolidated subsidiaries, the following is presented on a non-consolidated basis.

JBIC’s total credit commitments for the year ended March 31, 2025 amounted to ¥1,383 billion, and the outstanding balance as of March 31, 2025 was ¥15,792 billion, each on a non-consolidated basis.

For the fiscal year ended March 31, 2025, JBIC’s total additional disbursed amounts under loans and guarantees on a non-consolidated basis amounted to ¥1,903 billion and collections of loans and guarantees on a non-consolidated basis amounted to ¥2,923 billion. As of March 31, 2025, JBIC’s outstanding balance of guarantees on a non-consolidated basis was ¥1,329 billion.

The following table sets forth, as of the dates indicated, the total amount of credit outstanding provided by JBIC on a non-consolidated basis, by type and geographical distribution in accordance with JBIC’s system of classification:

Credit Outstanding by Type and Geographical Distribution of the JBIC Operations (Non-consolidated)


	JBIC Operations				JBIC Operations
	As of March 31,				As of March 31,
	2024				2025
	(In millions of yen except for the percentage)				(In millions of yen except for the percentage)
EXPORT LOANS
Asia	¥	653,660	3.8	%	¥	576,538	3.6	%
The Pacific		1,183	0.0	%		866	0.0	%
Europe		119,223	0.7	%		80,877	0.5	%
The Middle East		142,867	0.8	%		109,417	0.6	%
Africa		99,756	0.5	%		66,488	0.4	%
North America		—	—			—	—
Latin America		18,609	0.1	%		48,822	0.3	%
International Organizations, etc.		—	—			—	—

Total	¥	1,035,300	6.1	%	¥	883,010	5.5	%


	JBIC Operations				JBIC Operations
	As of March 31,				As of March 31,
	2024				2025
	(In millions of yen except for the percentage)				(In millions of yen except for the percentage)
IMPORT LOANS
Asia	¥	—	—		¥	—	—
The Pacific		17,795	0.1	%		14,558	0.0	%
Europe		—	—			—	—
The Middle East		270,014	1.6	%		192,714	1.2	%
Africa		—	—			—	—
North America		—	—			—	—
Latin America		127,644	0.7	%		125,747	0.8	%
International Organizations, etc.		80,000	0.4	%		80,000	0.5	%

Total	¥	495,454	2.9	%	¥	413,020	2.6	%

OVERSEAS INVESTMENT LOANS
Asia	¥	2,815,471	16.7	%	¥	2,708,252	17.1	%
The Pacific		1,050,222	6.2	%		1,192,254	7.5	%
Europe		3,025,027	17.9	%		2,973,073	18.8	%
The Middle East		1,587,086	9.4	%		1,484,541	9.4	%
Africa		318,166	1.8	%		266,244	1.6	%
North America		3,590,938	21.3	%		3,051,388	19.3	%
Latin America		2,094,975	12.4	%		1,920,997	12.1	%
International Organizations, etc.		3,945	0.0	%		2,275	0.0	%

Total	¥	14,485,833	86.0	%	¥	13,599,027	86.1	%

UNTIED LOANS
Asia	¥	297,980	1.7	%	¥	314,176	1.9	%
The Pacific		—	—			—	—
Europe		—	—			26,626	0.1	%
The Middle East		85,988	0.5	%		173,527	1.1	%
Africa		1,042	0.0	%		1,166	0.0	%
North America		—	—			—	—
Latin America		71,543	0.4	%		55,251	0.3	%
International Organizations, etc.		15,869	0.0	%		14,642	0.0	%

Total	¥	472,424	2.8	%	¥	585,390	3.7	%

GOVERNMENTAL LOANS
Asia	¥	11,850	0.0	%	¥	10,757	0.0	%
The Pacific		—	—			—	—
Europe		1,808	0.0	%		1,769	0.0	%
The Middle East		4,467	0.0	%		3,350	0.0	%
Africa		—	—			—	—
North America		—	—			—	—
Latin America		—	—			—	—
International Organizations, etc.		—	—			—	—

Total	¥	18,126	0.1	%	¥	15,878	0.1	%

EQUITY INVESTMENTS
Asia	¥	37,200	0.2	%	¥	39,449	0.2	%
The Pacific		46,377	0.2	%		37,634	0.2	%
Europe		30,458	0.1	%		27,476	0.1	%
The Middle East		—	—			—	—
Africa		—	—			—	—
North America		53,218	0.3	%		48,229	0.3	%
Latin America		3,141	0.0	%		3,041	0.0	%
International Organizations, etc.		151,166	0.9	%		139,999	0.8	%

Total	¥	321,563	1.9	%	¥	295,830	1.8	%

Total credit outstanding	¥	16,828,701	100.0	%	¥	15,792,157	100.0	%

The following table sets forth, for the periods indicated, the total credit commitments made by JBIC on a non-consolidated basis, by type and geographical distribution in accordance with JBIC’s system of classification.

Credit Commitments by Type and Geographical Distribution of the JBIC Operations (Non-consolidated)


	JBIC Operations				JBIC Operations
	As of March 31,				As of March 31,
	2024				2025
	(In millions of yen except for the percentage)				(In millions of yen except for the percentage)
EXPORT LOANS
Asia	¥	16,224	0.9	%	¥	—	—
The Pacific		—	—			2,501	0.1	%
Europe		—	—			2,516	0.1	%
The Middle East		—	—			—	—
Africa		—	—			1,233	0.0	%
North America		—	—			—	—
Latin America		39,125	2.1	%		4,581	0.3	%
International Organizations, etc.		—	—			—	—

Total	¥	55,349	3.0	%	¥	10,832	0.7	%

IMPORT LOANS
Asia	¥	58,640	3.2	%	¥	—	—
The Pacific		—	—			—	—
Europe		—	—			—	—
The Middle East		—	—			—	—
Africa		—	—			—	—
North America		—	—			—	—
Latin America		72,172	3.9	%		70,007	5.0	%
International Organizations, etc.		80,000	4.4	%		—	—

Total	¥	210,813	11.6	%	¥	70,007	5.0	%

OVERSEAS INVESTMENT LOANS
Asia	¥	269,507	14.9	%	¥	157,653	11.3	%
The Pacific		154,949	8.5	%		343,435	24.8	%
Europe		484,596	26.8	%		211,125	15.2	%
The Middle East		—	—			46,586	3.3	%
Africa		—	—			7,861	0.5	%
North America		148,464	8.2	%		249,261	18.0	%
Latin America		304,699	16.8	%		94,280	6.8	%
International Organizations, etc.		—	—			—	—

Total	¥	1,362,217	75.3	%	¥	1,110,203	80.2	%

UNTIED LOANS
Asia	¥	46,331	2.5	%	¥	13,500	0.9	%
The Pacific		—	—			—	—
Europe		—	—			57,327	4.1	%
The Middle East		35,884	1.9	%		82,405	5.9	%
Africa		2,249	0.1	%		—	—
North America		—	—			—	—
Latin America		—	—			14,271	1.0	%
International Organizations, etc.		7,518	0.4	%		21,729	1.5	%

Total	¥	91,984	5.0	%	¥	189,232	13.6	%

GOVERNMENTAL LOANS
Asia	¥	—	—		¥	—	—
The Pacific		—	—			—	—
Europe		—	—			—	—
The Middle East		—	—			—	—
Africa		—	—			—	—
North America		—	—			—	—
Latin America		—	—			—	—
International Organizations, etc.		—	—			—	—

Total	¥	—	—		¥	—	—


	JBIC Operations				JBIC Operations
	As of March 31,				As of March 31,
	2024				2025
	(In millions of yen except for the percentage)				(In millions of yen except for the percentage)
EQUITY INVESTMENTS
Asia	¥	84,386	4.6	%	¥	1,411	0.1	%
The Pacific		—	—			—	—
Europe		—	—			—	—
The Middle East		—	—			—	—
Africa		—	—			—	—
North America		—	—			—	—
Latin America		—	—			—	—
International Organizations, etc.		2,828	0.1	%		2,105	0.1	%

Total	¥	87,215	4.8	%	¥	3,516	0.2	%

Total credit commitments	¥	1,807,579	100.0	%	¥	1,383,792	100.0	%

Loan and Guarantee Terms of the JBIC Operations

The JBIC Act provides that JBIC’s interest rates and guarantee charges shall be determined in light of the interest rates and commissions charged for guarantees by private banks on a basis such that the revenues of the JBIC Operations will cover its expenditures and losses. In addition, JBIC may not compete with private financial institutions in extending loans and guarantees, and may extend loans and guarantees only if financing by private financial institutions on ordinary terms is deemed difficult. JBIC carefully investigates the financial position of each prospective borrower and the technical and financial aspects of the project to be financed, and with respect to the Ordinary Operations, a loan or guarantee is extended only if there is reasonable assurance of repayment.

JBIC itself determines the interest rates, maturities, loan participation percentages, security and other terms on which it lends its funds or extends its guarantees. The interest rate to be applied to each loan is set by the board of directors of JBIC, taking into consideration JBIC’s funding cost and the rate for borrowers of the highest credit standing from private banks extending long-term loans.

Most of the JBIC Operations involve the financing of projects in cooperation with private financial institutions. Loans extended to domestic borrowers are usually secured by a bank guarantee, a mortgage or other collateral, or supported by a covenant requiring the borrower to provide security to JBIC at its request. Overseas direct loans, which are usually extended to banks, governmental institutions in foreign countries or private companies with Japanese capital, are generally secured by guarantees issued by the foreign government or the foreign governmental financial institution, by securities issued by Japanese domestic companies, or by cash flow and other assets of the borrower taken as security by JBIC.

In addition to the loan terms provided in the JBIC Act, JBIC’s terms and conditions for export loans are determined in accordance with the OECD’s Arrangement on Officially Supported Export Credits, commonly referred to as the “Arrangement.” The Arrangement, which was established to encourage competition among exporters based on quality and prices of goods and services exported rather than on the most favorable officially supported export credits, stipulates limitations on financing terms and conditions including minimum interest rates, maximum credit terms and minimum down payments for officially supported medium- and long-term export credits.

The following table sets forth information concerning the balances of the JBIC Group’s outstanding loans as of March 31, 2024 and 2025.

Loan Balances of the JBIC Operations by Remainder of Term^(a)


	As of March 31, 2024				As of March 31, 2025
	(In billions of yen except for the percentage)				(In billions of yen except for the percentage)
One year or less	¥	2,128	13.2	%	¥	2,420	16.0	%
More than 1 to 2 years		2,435	15.1	%		2,054	13.6	%
More than 2 years to 3 years		2,033	12.6	%		1,664	11.0	%
More than 3 years to 4 years		1,760	10.9	%		1,579	10.4	%
More than 4 years to 5 years		1,567	9.7	%		1,848	12.2	%
More than 5 years to 6 years		1,599	9.9	%		1,225	8.1	%
More than 6 years to 7 years		1,134	7.0	%		923	6.1	%
More than 7 years to 8 years		776	4.8	%		849	5.6	%
More than 8 years to 9 years		743	4.6	%		519	3.4	%
More than 9 years to 10 years		379	2.3	%		405	2.6	%
More than 10 years		1,534	9.5	%		1,590	10.5	%

Total	¥	16,092	100.0	%	¥	15,080	100.0	%

(a)	The amounts do not include principal that is overdue and unpaid, and principal that may possibly be waived according to the “Changes in Debt Relief Method” announced by Government of Japan in December 2003.

Allowance for Loan Losses of the JBIC Operations

The JBIC Group provides an allowance for possible loan losses, pursuant to the relevant cabinet order and related regulations. Allowance for loan losses as of March 31, 2025 amounted to ¥501,749 million.

In cases where borrowers indicate that they may be unable to meet payments on their loans, the JBIC Group may revise the terms of repayment. In the case of direct loans to foreign governments, the international system provides several mechanisms and institutions through which countries facing repayment difficulties can effect remedial measures in agreement with their creditors (Paris Club rescheduling). Therefore, rescheduled principal and interest payments may have to be accepted in order to facilitate the collectability of some loans or portions of loans. Should a default occur in the payment of principal or interest (whether by reason of a failure to agree on modified loan terms or otherwise), the JBIC Group considers the related loan to be in arrears immediately to the extent of the defaulted amount.

The JBIC Group’s allowance for possible loan losses has a significant effect on the JBIC Group’s business results. The JBIC Group believes that the estimates and the assumptions used for estimating liabilities are reasonable and the allowance for possible loan losses is appropriately calculated. However, the estimation of liabilities involves uncertainties that are uncontrollable by management, and the JBIC Group’s estimation of liabilities may change due to unexpected changes in the underlying assumptions.

Sources of Funds of the JBIC Operations

The following table sets forth information concerning the sources of funds for the JBIC Operations during the fiscal year ended March 31, 2025.

Sources of Funds of the JBIC Operations


	Year ended March 31,
	2025
	(In billions of yen)
Borrowings from the Government Fund for Fiscal Investment and Loan Program^(a)	¥	154
Borrowings from the Foreign Exchange Fund Special Account^(b)		1,914
Borrowings in Foreign Currency from Financial Institutions^(a)		—
Bonds and Notes with Government Guarantee^(b)		539
Bonds and Notes without Government Guarantee		10

(a)	Long-term borrowings.

(b)

The amount of borrowings from the Foreign Exchange Fund Special Account is calculated based on the exchange rate at the end of the month immediately preceding the date on which the borrowings were incurred. The amount of Bonds and Notes with the Government Guarantee is calculated based on the exchange rate at the end of the month immediately preceding the date of issuance of the bonds and notes.

JBIC raises funds for its JBIC Operations through borrowings from the Government of Japan and issuances of Japanese Government-guaranteed bonds and notes in international markets. In the fiscal year ended March 31, 2024, JBIC issued bonds with a guarantee from the Government of Japan in the aggregate amount of $5.5 billion, and did not issue any bonds without a guarantee from the Government of Japan. In the fiscal year ended March 31, 2025, JBIC issued bonds with a guarantee from the Government of Japan in the aggregate amount of $2.5 billion, €500 million and £350 million, and issued a bond without a guarantee from the Government of Japan in the amount of ¥10 billion.

See “—Recent Developments” for information regarding $1.0 billion of 4.625% government guaranteed bonds due April 17, 2034 issued by JBIC on April 17, 2024, ¥10 billion of 0.639% non-guaranteed domestic bonds due March 19, 2029 issued by JBIC on May 28, 2024, $1.5 billion of 4.625% government guaranteed bonds due July 22, 2027 issued by JBIC on July 22, 2024, €500 million of 2.625% government guaranteed bonds due October 17, 2030 issued by JBIC on October 17, 2024, £350 million of 4.625% government guaranteed bonds due January 28, 2030 issued by JBIC on January 27, 2025, and $1.0 billion of 3.875% government guaranteed bonds due July 3, 2028 issued by JBIC on July 3, 2025.

Capitalization

The Capitalization of the JBIC Group as of March 31, 2025 was as follows:

	$
	As of March 31, 2025
	(In millions of yen)
Total assets	¥	20,464,753
Total net assets		3,245,922
Capital stock		2,332,800
Retained earnings		1,163,445
Total net assets/Total assets		15.86	%

The capital adequacy ratios for JBIC at the end of the fiscal year ended March 31, 2025, which are calculated in accordance with the Basel III framework and relevant international standards, are set forth in the table below.

	$
	As of March 31, 2025
	(In billions of yen except for the percentage)
Total risk-weighted capital ratio		20.73	%
Tier 1 risk-weighted capital ratio		19.75	%
Common Equity Tier 1 risk-weighted capital ratio		19.75	%
Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital)	¥	3,644
Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)		3,471
Common Equity Tier 1 capital		3,471
Risk-weighted assets		17,582
The amount of minimum capital requirements		1,406

Non-performing Loans

JBIC assessed its loans and other credits in accordance with disclosure requirements that are based, in all material respects, on two sets of disclosure regulations that are followed by commercial financial institutions in Japan, although JBIC is not required to follow either set of regulations. The first set of disclosure regulations includes those set forth under the Banking Act of 1981, as amended (the “Banking Act”). The second set of disclosure regulations includes those set forth in the Act on Emergency Measures for the Revitalization of the Functions of the Financial System of 1998, as amended (the “Financial Revitalization Act”).

The table below sets forth the results of the JBIC Group’s assessment of the JBIC Group’s loans as of March 31, 2025, classified in all material respects according to the Banking Act and the Financial Revitalization Act^(a):


	As of March 31, 2025
	(In millions of yen)
Bankrupt and quasi-bankrupt assets^(b)		—
Doubtful assets^(c)	¥	334,189
Substandard loans		191,316
Loans with interest or principal repayments three months or more in arrears^(d)		123,001
Restructured loans^(e)		68,314

Total	¥	525,505

(a)	All of the loans shown in the table relate to the Ordinary Operations. Special Operations did not have any applicable loans as of March 31, 2025.

(b)

Bankrupt and quasi-bankrupt assets are loans to and other credits to borrowers which have begun proceedings under the Bankruptcy Act, the Corporate Reorganization Act, the Financial Revitalization Act or other similar laws of Japan and have financially failed, as well as similar loans as so designated.

(c)

Doubtful Assets are loans and other credits to borrowers who have not financially failed but whose financial and operational conditions have deteriorated and who have a possibility that payment of principal and/or interest will not be made on a contractual basis, and which do not fall under the category of Bankrupt and Quasi-bankrupt Assets.

(d)	Loans with interest or principal repayments three months or more in arrears are loans whose principal or interest payment is three months or more in arrears, and which do not fall under the category of Bankrupt and quasi-bankrupt assets or Doubtful assets.

(e)

Restructured loans are loans whose repayment terms and conditions have been amended in favor of the borrowers (e.g. reduction of or exemption from the stated interest rate, the deferral of interest payments, the extension of principal repayments or renunciation of claims) in order to support the borrowers’ recovery from financial difficulties, and which do not fall under the category of Bankrupt and quasi-bankrupt assets, Doubtful assets, or Loans with interest or principal repayments three months or more in arrears.

In the event that a debtor country is temporarily unable to repay its external public debt (debts to creditors that are public institutions such as central governments, trade insurance agencies and export credit agencies) due to a decline in its balance of payments, meetings of creditor countries (the “Paris Club”) may be held to discuss debt relief measures. When creditor countries agree on debt relief measures, debt rescheduling agreements between the creditors and a debtor are agreed, and repayments are made according to the agreements. During this temporary liquidity assistance effort, the debtor country implements an economic reform program pursuant to an agreement with the IMF and continues repayments of its debts. The principal amount of loans as of March 31, 2025, of which JBIC agreed to provide debt relief pursuant to the Paris Club agreements was ¥43,494 million.

JBIC classifies its loans rescheduled under the Paris Club made to borrowers classified under the self-assessment as “Watchlisted”, but not “Loans with interest or principal repayments three months or more in arrears”, as “Restructured loans.” The amount of such loans as of March 31, 2025, included in “Restructured loans” in the above table, is ¥33,016 million.

Risk Management

As a policy-lending institution, JBIC separately manages the major risks of Ordinary Operations and Special Operations in the following manner.

Credit Risk

Managing credit risk

The basis of credit risk management is centered on individual credit management based on the creditworthiness of the borrower during the credit approval process.

When a new credit application is processed, the relevant finance departments (sales promotion departments) and credit departments collect and analyze information on the borrower. The overseas representative offices also play a part in collecting information on foreign governments and corporations. Credit appraisal takes place based on the information that has been gathered and analyzed, with the different departments ensuring appropriate check throughout the process, leading to the final decision by the management.

For lending to foreign governments and corporations, JBIC makes use of its position as a public institution and exchanges views and information with governments and other authorities in recipient countries, international institutions such as the IMF and the World Bank, other regional development banks and official export credit agencies as well as private financial institutions in the industrial countries. Using all these channels, JBIC evaluates sovereign or country risk (risk in addition to corporate risk associated with the country in which the corporation is located) based on a broad range of information on government and government agency borrowers as well as political and economic conditions in their countries.

For credit to domestic and foreign corporations, there is a need to evaluate their creditworthiness and the appropriateness of the collateral they provide. In particular, for credit related to projects overseas, credit evaluation involves checking the certainty of transactions to be financed, feasibility studies of projects and the industry in which the borrower operates.

Credit risk rating

JBIC has institutionalized its credit risk rating system that covers substantially all of its borrowers. JBIC uses its credit risk ratings for loan appraisals and to quantify its credit risks. Further, the credit risk rating system has been revised where necessary.

Asset self-assessment

As part of its credit risk management, JBIC undertakes self-assessments, similar to Japanese private financial institutions. In this process, JBIC, following the examples of private financial institutions, conducts first stage assessments by the relevant finance departments, second stage assessments by the credit and country economic analysis departments, and inspections by an independent auditing department. The results of asset self-assessment are used for the disclosure of the quality of assets to enhance the transparency of JBIC’s financial position.

Quantifying credit risks

Besides the individual credit management outlined above, credit risks are quantified to assess the overall risk of the portfolio in these operations. To quantify credit risks, it is important to take into account the characteristic of the loan portfolio, that there are a significant proportion of long-term loans and loans involving sovereign risk or country risk. Also to be taken into account is the mechanism of securing assets, such as the framework of international financial assistance to debtor countries through the Paris Club, which is unique to official creditors. This account uses a unique model to quantify the credit risk taking account of the above explained elements and measures amount of credit risk, which are utilized for credit risk management.

Risks relating to transactions with Russian counterparties and compliance with economic sanctions

JBIC has historically provided loan and investment guarantees to entities in Russia in order to support Japanese companies’ overseas business development and securing of resources. In light of the ongoing Russian invasion of Ukraine, our business activities with Russian counterparties or involving certain project financing in Russia could subject us to various risks and uncertainties.

In response to the ongoing Russian invasion of Ukraine, since February 2022, governments, including the Government of Japan, have taken various measures, such as economic sanctions against Russia, resulting in changes in the market environment. Due to the broad economic sanctions imposed on Russian entities and persons by the United States, EU, UK, Japan, and other countries worldwide, including, but not limited to, sanctions or other restriction imposed on certain Russian financial institutions and the removal of certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, JBIC may experience increased credit risk and defaults on our loans to counterparties in Russia.

JBIC currently engages in business involving certain counterparties that are subject to such sanctions, including, but not limited to, Russian financial institutions such as Sberbank of Russia and Vnesheconombank. Although JBIC has established policies to ensure that JBIC conducts our activities in Russia in compliance with applicable laws and regulations, including applicable sanctions, any actual or perceived failure to comply with applicable laws and regulations could result in regulatory actions against us, damage to our reputation, or other negative consequences. In addition, our participation in transactions with sanctioned entities may lead some potential counterparties and investors to avoid doing business with us or investing in our securities. JBIC may be required to, or otherwise decide to, terminate our relationships with, or activities involving, Russian counterparties or other entities, which may result in termination fees or other related costs. As a result of the foregoing, our results of operations and financial condition may be negatively impacted.

Given this background, JBIC is closely monitoring the trends in sanctions imposed by governments and other entities with respect to Russia, including by reflecting the impact of the situation in Ukraine on JBIC’s loan loss reserves, by examining the impact of sanctions measures on the business and performance of borrowers in determining borrower classification, and assessing the impact on credit risk on a case-by-case basis. While some factors are uncertain at this time, there is a risk that, in connection with Russia-related borrowers, our non-performing loans and credit-related costs may increase. In addition, if market disruptions or unforeseen circumstances arise due to future developments related to the ongoing Russian invasion of Ukraine, JBIC may suffer losses caused by market risks or other factors, and JBIC’s financing costs may increase.

Market Risks

Exchange rate risk

Foreign currency-denominated loans conducted in these operations involve risks related to exchange rate fluctuations. JBIC has a consistent policy of managing this risk by fully hedging this risk exposure through the use of currency swaps.

Interest rate risk

Interest rate risk arises from exposure to market interest rate fluctuations for yen-denominated loan and foreign currency-denominated loan operations and the policy for managing interest rate risk is described below.

(1) Yen-denominated loan operations

Funding for yen-denominated loans is mainly managed at fixed-rate interest. Interest rate risk for yen-denominated loans, however, is limited since derivative transactions such as interest rate swaps are used to hedge interest rate risk for portions of loans that are thought to have high exposures to interest rate fluctuation.

(2) Foreign currency-denominated loan operations

Interest rate risks associated with foreign currency-denominated loan operations and relevant funding are generally hedged by managing the funds with floating interest rates with the use of interest rate swap transactions.

Derivatives transactions

Policy for derivatives transactions

JBIC engages in derivative transactions solely for the purpose of hedging foreign exchange risks and interest rate risks associated with its lending and funding operations.

Transactions

Derivatives transactions of JBIC include interest rate and currency swaps and forward exchange contracts. The table below gives details of these transactions as of March 31, 2025.

Credit Risk Amounts of Derivatives, etc. for JBIC


	As of March 31, 2025
	Notional Amount^(a)		Credit Risk
	(In billions of yen)
Interest Rate Swaps and Currency Swaps^(b)	¥	11,529	¥	189
Forward Exchange Contracts		8		—
Credit Risk Reductions through Netting		—		—

Total	¥	11,538	¥	189

(a)	The amounts indicated are maximum notional amounts to which JBIC may be exposed during the period since March 31, 2025, through the maturity date of the relevant derivative contract.

(b)	As of March 31, 2025, the notional amount of interest rate swaps was ¥6,403 billion and the notional amount of currency swaps was ¥5,126 billion.

Risks involved in derivatives transactions and policies for addressing risks

Credit risk. Credit risk refers to potential losses from the failure of a counterparty to perform its obligations in accordance with the terms and conditions of the contract governing transactions due to bankruptcy or deteriorating business conditions.

JBIC constantly monitors the market value of derivatives transactions as to each counterparty and the amount of its credit exposure to and creditworthiness of each counterparty in order to ascertain the appropriateness of entering into or maintaining a transaction with each counterparty.

Market risk. Market risk refers to the risk of potential losses due to changes in the value or market price of financial instruments, such as derivatives, that are caused by fluctuations in exchange rates and interest rates. As JBIC engages in derivatives transactions solely for the purpose of hedging market risks of other transactions, such as raising capital or loan transactions, the market risks related to such derivatives transactions are generally offset by the market risks involved in the transactions that are being hedged.

Liquidity risk. Liquidity risk refers to the risk of cash flow tightening due to worsening fund-raising capability that arises from deterioration of creditworthiness or mismatches in the maturity of assets and liabilities. JBIC minimizes liquidity risk through effective cash flow management and diversification of its funding sources. In addition, multiple financial institutions have established short-term credit lines with JBIC. JBIC borrows under the Fiscal Investment and Loan Program and issues government-guaranteed bonds in the international capital markets for the JBIC Operations. JBIC may also issue bonds without a government guarantee in the domestic capital markets.

Operational risk. Operational risk refers to the potential loss from negligence or from accidents or misdeeds on the part of JBIC’s management and staff or from external events. JBIC minimizes this risk by ensuring accurate operations through checks on the administrative process, creating operational manuals, improving training programs, and streamlining and computerizing procedures.

Computer system risk. Computer system risk refers to the potential loss from a breakdown or malfunction in computer systems as well as from their misuse. With greater reliance on information systems, there is an increasing need to make the operations of JBIC smoother and more effective by exchanging information with Japanese firms as well as foreign governments through information networks. It is thus important to give greater weight to information management and staff with respect to internal information management and by putting in place measures to block illegal access to JBIC’s information systems from external sources by way of information networks. As part of an effort to ensure information security, JBIC drew up the Information Security Policy and created the Information Security Committee, consisting of the Managing Executive Officer in charge and heads of the relevant departments.

Information security risk. Information security risk refers to the potential loss caused by threats to confidentiality of information assets. JBIC manages information security risk by establishing information security rules including information management and by thoroughly training officers and employees. However, JBIC still faces the risk of becoming liable for damages for, or incurring expenses in order to respond to, issues such as information leaks and system stoppages caused by cyberattacks, other unauthorized access or infection by computer viruses.

Disaster and crisis risks. Disaster and crisis risks refer to the potential loss caused by disasters or other crises. In order to manage disaster and crisis risks, JBIC has established internal rules regarding crisis management. In the event a crisis occurs and normal operations are disrupted or disruptions to normal operations are anticipated, JBIC will establish a Countermeasure Office in accordance with the internal rules regarding crisis management and will work towards prompt and efficient recovery of operations. JBIC has also established a Business Continuity Plan for the purpose of carrying out continuous operations in the event a major earthquake occurs in the Tokyo metropolitan area.

MANAGEMENT

JBIC’s board of directors has the ultimate responsibility for the administration of its affairs. JBIC’s articles of incorporation provide for a board of directors of not more than nine directors and three corporate auditors. All directors and corporate auditors are elected by the Japanese government as JBIC’s sole shareholder at the shareholder’s general meetings, but the election of each director and corporate auditor is subject to approval of the Minister of Finance in accordance with the JBIC Act. The normal term of office for directors is two years, and the normal term of office for corporate auditors is four years, but directors and corporate auditors may serve any number of consecutive terms. The board of directors may elect from among its members a Governor, Deputy Governor, an Executive Managing Director, several Senior Managing Directors and several Managing Directors. The Governor acts as the chairperson at the shareholder’s general meeting. The board of directors may also elect one or more representative directors from among its members, but such election is subject to the approval of the Minister of Finance. Each of the Governor, Deputy Governor, Executive Managing Director and Senior Managing Directors shall represent JBIC in the conduct of its affairs, and in addition, several directors may be appointed to have the authority to represent JBIC in the conduct of its affairs.

The corporate auditors form the board of corporate auditors. The board of corporate auditors has a statutory duty to prepare and submit an audit report to the board of directors each year based on the audit reports issued by the individual corporate auditors in that year. A corporate auditor may note his or her opinion in the audit report issued by the board of corporate auditors if his or her opinion expressed in the individual audit report is different from the opinion expressed in the audit report issued by the board of corporate auditors. The board of corporate auditors is empowered to establish audit principles, the method of examination by the corporate auditors of JBIC’s affairs and financial position and any other matters relating to the performance of the corporate auditors’ duties.

JBIC is required to appoint, and has appointed, independent auditors, who have the statutory duties of examining the financial statements, prepared in accordance with Japanese GAAP, to be submitted to the shareholders by a representative director, and preparing their audit report thereon. JBIC has selected its independent auditors to audit the financial statements for the fiscal years ended March 31, 2024 and 2025.

JBIC’s current directors and corporate auditors as of June 20, 2025, are as follows:


Name		Title
HAYASHI Nobumitsu		Governor
AMAKAWA Kazuhiko		Deputy Governor
HASHIYAMA Shigeto		Executive Managing Director
UCHIDA Makoto		Senior Managing Director
OGAWA Kazunori		Senior Managing Director
KIKUCHI Yo		Senior Managing Director
MAEDA Tadashi		Managing Director, Chairman of the Board of Directors
KAWAMURA Yoshinori		Managing Director (Outside Director)
SASAKI Mami		Managing Director (Outside Director)
NASU Noriko		Full-Time Audit and Supervisory Board Member
TSUCHIYA Mitsuaki		Outside Audit and Supervisory Board Member
MOTOMURA Aya		Outside Audit and Supervisory Board Member

DEBT RECORD

There has been no default in the payment of interest or principal on any obligation of the JBIC Group, including those obligations incurred by its predecessors to which JBIC succeeded.

FINANCIAL STATEMENTS

Audited consolidated financial statements for the fiscal year ended March 31, 2025 and 2024 of the JBIC Group prepared in accordance with Japanese GAAP are included as Exhibit 2 to this Annual Report on Form 18-K filed with the Commission. Such financial statements have been audited by Ernst & Young ShinNihon LLC, independent auditors, as stated in their report accompanying such financial statements.

JBIC started preparing financial statements in accordance with IFRS Accounting Standards as issued by the IASB from the fiscal year ended March 31, 2015 for reference purposes in order to improve comparability with international issuers. The JBIC Group’s consolidated financial statements as of and for the fiscal years ended March 31, 2025 and 2024 prepared in accordance with IFRS Accounting Standards are included as Exhibit 7 to this Annual report on Form 18-K. Such financial statements have been audited by Ernst & Young ShinNihon LLC, independent auditors, as stated in their report accompanying such financial statements.

In preparing financial statements in accordance with IFRS Accounting Standards as issued by the IASB, JBIC made adjustments to the financial statements prepared in accordance with Japanese GAAP which were prepared based on the JBIC Act and related regulations. Details of reconciliations between the two sets of financial statements are included as Exhibit 9 to this Annual Report on Form 18-K.

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