JBIC concluded a loan agreement with Tatsumori Ltd. (Tatsumori) to provide part of the funds the company needs to acquire shares of Sri Lanka-based CEYLON QUARTZ INDUSTRIES (PRIVATE) LIMITED (CQI), which Tatsumori has jointly invested in with a local company. Tatsumori, a small and medium-sized enterprise (SME) engaged in the production and sale of silica*1 used as filler material for semiconductors,*2 is expanding into Malaysia, Sri Lanka, China, and other countries in order to secure raw materials and expand sales. Tatsumori plans on obtaining a stable supply of raw materials and moving forward with its global business deployment by acquiring a majority of CQI's shares and thus a controlling interest through the share acquisition. The loan agreement provides long-term funds necessary for an overseas mergers and acquisitions (M&A) and supports the overseas business expansion and new business development of mid-tier enterprises and SMEs. As Japan's policy-based financial institution, JBIC partners with private-sector financial institutions and provides support for overseas M&As by Japanese companies, including those of mid-tier enterprises and SMEs.
- *1Silica refers to silicon dioxide.
- *2Filler material for semi-conductors is an insulator to protect semi-conductors.