Japan signs first $2.2 billion loan under $550 billion US investment pledge

TOKYO, May 1 (Reuters) - Japan has signed a $2.2 billion loan agreement for the first batch of projects under its $550 billion U.S. investment pledge, kicking off financing tied to a trade deal that cut U.S. tariffs on Japanese imports to 15%.

State-owned Japan Bank for International Cooperation said on Friday it would provide about a third of the $2.2 billion financing, with the rest provided by commercial banks.

Sources familiar with the matter said the commercial bank portion will be provided by Mitsubishi UFJ Financial Group 8306.T, Sumitomo Mitsui Financial Group 8316.T, and Mizuho Financial Group 8411.T, and will be guaranteed by state-owned Nippon Export and Investment Insurance (NEXI).

The first three projects, with a combined value of $36 billion, include an oil export facility in Texas, an industrial diamond plant in Georgia, and a natural gas-fired power plant in Ohio.

Under the arrangement with the U.S., available free cash flows from investments will be split evenly between the two countries until a specific allocation is reached, after which 90% will go to the U.S.