United States of America/ Overseas Investment Insurance and Overseas Untied Loan Insurance (Special Condition for Subordinated Loan) for establishment of a subsidiary engaged in the processing and sales of steel frames

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Investment Insurance and Overseas Untied Loan Insurance (Special Condition for Subordinated Loan) for investments made by Yamaguchi Heavy Industries Ltd. (“YHI”) for a steel frame manufacturing, processing, distribution and sales project (“the Project”) in the United States of America.

In the project, YHI establishes American Katerra LLC. (“AK”), which engaged in a steel frame manufacturing, processing, distribution and sales, and service business utilizing decarbonization assessment technologies (Green Carbon Steel® and Blue Carbon Steel®) and architectural modeling technique (BIM). Concerning YHI’s investment in AK and parent-subsidiary loan, NEXI covers losses incurred from the political risk.

YHI is a fabricator engaged in manufacturing, processing, distribution, and sales of steel frames, utilizing technologies such as decarbonization assessment. It aims to expand its business globally by implementing reforms utilizing the latest technologies such as AI, IoT, and robots. The project marks YHI's first establishment of an overseas subsidiary and aims to contribute to a carbon-neutral society by using GX (green transformation) technologies, such as low-CO2 emission steel during production, as well as to enter the large American market as a Japanese fabricator. This support contributes to the strategic direction outlined in White Paper on International Economy and Trade 2025 and the International Trade and Economic Strategy 2025, which identify the overseas expansion of medium-sized and small enterprises as a vital component in driving Japan’s economic growth.

NEXI, as a governmental financial institution of Japan, will continue to actively support Japanese companies in developing their business overseas.

(Reference)

Insured	Yamaguchi Heavy Industries Ltd.
Investee	American Katerra LLC.
Insured value	Overseas Investment Insurance: Approximately USD 1 million Overseas Untied Loan Insurance (Special Condition for Subordinated Loan): Approximately USD 1 million
Covered risk	Political risk 100%
Tenor	Approximately 5 years

Contact:
Overseas Investment Insurance Underwriting Group 1
Investment Insurance Department
Tel: +81-(0)3-3512-7668