Loan for the Acquisition of U.S. - Based Beam Inc.
Supporting the overseas M&A of a Japanese company by hybrid financing

  • Area: North America
  • Manufacturing and Services

JBIC concluded a subordinated loan agreement, a type of hybrid financing,*1 with Suntory Holdings Limited (Suntory) to provide part of the funds necessary for the company to acquire U.S.-based Beam Inc. (now Beam Suntory Inc., referred to as "Beam" below), which makes and sells spirits. Under the policy of reinforcing its global spirits business, Suntory will acquire a controlling interest in Beam, which possesses numerous global brands, and aims to enhance the strength of its brand in the global spirits market and realize global growth using Beam's sales network and promote technological exchanges between the two companies. JBIC also concluded another loan agreement to supply some of the funds for the acquisition. By leveraging hybrid financing to help Japanese companies raise long-term funds for overseas M&As, JBIC supports the overseas business expansion of Japanese companies and contributes to at least maintaining if not improving the international competitiveness of Japanese industry.
  1. *1Hybrid financing is accounted for as a liability but part of it can be treated as capital when credit rating agencies assess the financial position of the borrower.
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