Second Credit Line for The Senshu Ikeda Bank and Disbursement of Sub-Loan
Supporting Overseas Business Activities by SMEs in Collaboration with Japanese Local Financial Institution
- Area: Asia
- 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 a loan agreement for offering an investment credit line (credit line for financing overseas investments) for supporting mid-tier enterprises as well as small and medium sized enterprises (collectively "SMEs") in their overseas business activities with The Senshu Ikeda Bank, Ltd. (the "Bank"; President and Representative Director: Hirohisa Fujita). As the first sub-loan1, JBIC provided 1.6 million U.S. dollars (JBIC portion) to the Bank on April 12 under this credit line committed for up to 20 million U.S. dollars. It follows the first investment credit line2 offered to the Bank in July 2012.
- This credit line provides mid- and long-term funds3 in U.S. dollars to SMEs and their overseas subsidiaries through the Bank by offering the credit line for supporting Japanese SMEs for funding their overseas business activities.
- This sub-loan provided under the credit line to the Bank is intended to finance for manufacturing and selling of robot cables (exclusively used for industrial robots), continuous flexible cables and other products undertaken by an SME (a cable and cable-based equipment manufacturer) located in Osaka City, Osaka Prefecture.
- 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 overseas business activities by Japanese companies, including SMEs, by collaborating with Japanese local financial institutions to maintain and improve the international competitiveness of Japanese industries.
- *1 Although JBIC had already concluded the loan agreement on offering this credit line with the Bank on March 15, 2013, and provided the first sub-loan on April 12, 2013, under this credit line, the press release was issued today after the related procedures of relevant parties have been completed.
- *2 See Press Release on July 31, 2012,
- *3 The Bank will fund SMEs and its overseas subsidiaries, adding their own fund (up to 30% of total funding per investment) to the JBIC loan (also limited to 70%).