Citi acts as Lender to Japan for US-Japan Energy Initiative

Japan Invest 4 and Japan Invest 5, US financing companies established by the Japan Bank for International Cooperation (JBIC) are providing financing to Pennsylvania and Texas. 

The investments into the two US states will focus on advancing natural gas-fired power generator projects. 

Funding is the second part to the Strategic Investments Initiative, which comes under the Memorandum of Understanding between the US and Japan that was announced in September 2025.  

Nippon Exports and Investment Insurance (NEXI) provided insurance for the funding that was contributed by private financial institutions. 

Shahmir Khaliq, Head of Services for Citi, notes: “We are immensely proud to support JBIC and NEXI in this important transaction. Citi's global network, combined with the capabilities of our Public Sector Banking, Export & Agency Finance and Loan Agency teams, positions us to support complex financing transactions involving public sector institutions and private capital across markets. 

“This transaction reflects our commitment to facilitating strategic investment and fostering economic growth in both Japan and the US.”

US demand for energy 

Citi, through its Tokyo Citibank branch, was among those in the syndicated lending pool that provided roughly US$4.6bn for entities established, and funded by, JBIC. 

The two projects are intended to support an increase in energy demand, specifically in electricity in the US.

In addition, it will support the development of infrastructure such as data centres that have skyrocketed in demand due to the popularity of AI. 

The Japan-US collaboration also offers companies from both sides to contribute to the development of the infrastructure, with benefits expected to include strengthened supply chain resilience across both countries. 

Robert Nakamura, Citi Country Officer and Head of Banking for Japan, explains: “We are grateful for the opportunity to support Japan and the US in this important public and private sector effort to promote strategic infrastructure development under the Japan-US Strategic Investment Initiative. 

“The investment in energy infrastructure supports growth driven by AI and digitalisation, industrial competitiveness, and economic security.”

Citi in particular provides an advantage as the financial institution has operated in Japan for almost 125 years. 

It is well-situated to support the Japan-US collaboration with its expertise in cross-border transactions in addition to remaining committed to its customers through a vast global network.

Overall, Citi’s solutions will also aid the economic development in a sustainable manner for both Japan and the US. 

US banks and growing infrastructure 

Citi is not the only bank to have taken a recent interest in US economic development, as the Bank of America (BofA) has also committed funding for the US’s infrastructure development.

BofA, as part of a celebration of American culture with the country’s 250th Anniversary, committed to providing US$250bn over the course of 18 months to support essential infrastructure in the country, also due to growing demand in part to a growing use of AI.

As part of the Critical Infrastructure Finance Initiative, the BofA will provide funding through investment, advisory and financing solutions.