Citi, through Citibank, N.A., Tokyo Branch, has participated as a lender and agent in an approximately $4.6 billion syndicated loan facility supporting natural gas-fired power generation projects in Pennsylvania and Texas under the Japan-U.S. Strategic Investment Initiative.
The financing was extended to Japan Invest 4 LLC and Japan Invest 5 LLC, U.S. investment companies established and funded by the Japan Bank for International Cooperation, or JBIC. Proceeds will fund investments in the two U.S. power projects as electricity demand rises alongside the expansion of artificial intelligence, data centers and other advanced industries.
Private-sector financial institutions are participating alongside public-sector institutions, with their portion of the financing covered by insurance from Nippon Export and Investment Insurance, or NEXI. Citi did not disclose its individual commitment within the $4.6 billion syndicated facility.
The transaction represents the first investment under the second wave of projects advanced through the Strategic Investment Initiative, which stems from the Memorandum of Understanding on Strategic Investment announced by the governments of Japan and the United States in September 2025.
The financing highlights the increasing amount of capital being directed toward U.S. power infrastructure as data center development and digitalization add to electricity requirements. For power-intensive industries, generating capacity has become an important component of expansion plans, particularly as AI infrastructure requires substantial and reliable electricity supplies.
The Pennsylvania and Texas projects are intended to add natural gas-fired generation capacity capable of supporting that growth. Beyond meeting rising electricity demand, the investment initiative is designed to establish critical infrastructure supporting AI, data centers and advanced industrial activity while increasing collaboration between Japanese and U.S. companies.
The cross-border structure also reflects a broader strategic objective. By combining Japanese public-sector capital, private financial institutions and U.S. infrastructure investment, the initiative seeks to strengthen supply chain resilience in sectors considered critical to the economies of both countries.
“The investment in energy infrastructure supports growth driven by AI and digitalization, industrial competitiveness, and economic security,” said Robert Nakamura, Citi Country Officer and Head of Banking for Japan.
For Citi, the transaction draws on several parts of its institutional banking platform. Its Public Sector Banking, Export & Agency Finance and Loan Agency teams participated in the financing, combining cross-border lending capabilities with the involvement of government-backed financial institutions.
Shahmir Khaliq, Citi’s Head of Services, said the bank’s international network allows it to support financing structures that bring together public institutions and private capital across multiple markets.
“This transaction reflects our commitment to facilitating strategic investment and fostering economic growth in both Japan and the United States,” Khaliq said.
JBIC’s establishment of the two U.S. investment entities provides a vehicle for deploying Japanese-backed capital directly into American energy infrastructure. NEXI’s insurance coverage for the private-sector portion of the financing is designed to support participation by commercial lenders while distributing financing risk across the public-private structure.
The projects also place Pennsylvania and Texas within a larger investment strategy focused on the infrastructure needed to accommodate increasing U.S. computing and industrial demand. Both investments are centered on power generation, a foundational requirement for the continued development of data centers and other electricity-intensive facilities.
For Citi, participation in the syndicated facility extends a presence in Japan that dates back nearly 125 years. The bank operates in more than 180 countries and jurisdictions and provides financing and other services to corporations, governments, investors and institutions.
The approximately $4.6 billion financing demonstrates how the Japan-U.S. Strategic Investment Initiative is beginning to translate government-level economic cooperation into specific infrastructure investments. With the first transaction of the initiative’s second wave directed toward power generation, energy availability is emerging as a central component of the two countries’ strategy for supporting AI, digital infrastructure and advanced industrial development.