Japanese companies seeking $33 billion in financing from foreign banks for US power projects.

Japan is considering seeking financing from foreign banks to fund its natural gas power generation projects in the United States. These projects are part of a previously pledged $550 billion (approximately S$709.5 billion) investment plan in the U.S.

Japan's Ministry of Finance posted on social media platform X late Sunday night (July 26) that securing financing from foreign banks would help raise the foreign currency funds needed to implement the investment plan.

The Treasury Department stated that these banks will assist in financing natural gas power plant construction projects in Pennsylvania and Texas, totaling approximately $33 billion.

Reuters reported last week that JPMorgan Chase and other U.S. banks were close to reaching an agreement to provide financing under this investment framework.

Previously, Japan and the United States reached an agreement in which Japan would increase its investment in the United States in exchange for the United States lowering tariffs on Japanese goods.

The Ministry of Finance did not disclose the foreign banks involved in the financing, but noted that the financing would be provided concurrently with loans from the Japan Bank for International Cooperation (JBIC), which is supported by the Japanese government. Furthermore, the Japan Export & Investment Corporation (NEXI) will also provide guarantees for the loans issued by these banks.

Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260727-9425460)