Set up a Credit Line for The Senshu Ikeda Bank
Supporting SMEs for Funding their Overseas Business Activities
- Area: Others
- Manufacturing and Services
- Mid-Tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement for setting up a credit line for supporting mid-tier enterprises as well as small and medium sized enterprises (collectively "SMEs") for funding their overseas business activities with The Senshu Ikeda Bank, Ltd. (the "Bank"; President and Representative Director: Hirohisa Fujita). The credit line amounts up to 10 million U.S. dollars.
- This credit line provides mid- and long-term funds in U.S. dollars to SMEs and their overseas subsidiaries through the Bank by setting up the credit line for supporting Japanese SMEs for funding their overseas business activities. The two-step loan for Japanese financial institutions supporting overseas business deployment of SMEs is a newly added operation by the Japan Bank for International Cooperation Act (JBIC Act), which promulgated and came into effect on May 2, 2011, and this credit line is the first case of the above newly added operation. Furthermore, this is also the first case of collaboration with the Bank based on the MOU signed between the Bank and JBIC on July 2011.
- In recent years, the speed of economic globalization has accelerated more than ever and emerging countries, including those in the Asian region, have achieved rapid economic growth. Given these conditions, many Japanese companies, including SMEs, are speeding up their overseas business activities in order to capture the expanding overseas demand.
- Given the circumstances, JBIC will provide adequate and rapid response to their financial needs for overseas business activities by extending mid- and long-term funds in U.S. dollars through the Bank, which has a wide range of business relationships with SMEs, in the Kansai area, such as in Osaka and Hyogo Prefectures.
- JBIC will continue to support the overseas business activities by Japanese companies, including SMEs, by collaborating with Japanese local financial institutions in the light of maintaining and improving international competitiveness of Japanese industries.