Individual Agreements Based on Credit Line for SMFL Subsidiary in Thailand
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs by Promoting Finance Lease
- 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, CEO: Hiroshi Watanabe) signed today two loan agreements amounting up to approximately USD1,964 thousand (JBIC portion) with SMFL Leasing (Thailand) Co., Ltd. (SMFLT), a Thai subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited. These agreements are based on a credit line*1
for supporting the overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (SMEs), previously signed with SMFLT. Both of the loans are cofinanced with private financial institutions.
The two loan agreements will secure funding from SMFLT in lease financing for the facilities required by the following business operations:
- Automotive parts manufacturing and sales business of HAL ALUMINUM (THAILAND) CO., LTD, a Thai subsidiary of HIROSHIMA ALUMINUM INDUSTRY CO., LTD. (Headquarters: Hiroshima prefecture)
- Special steel heat and surface treatment business of U.T.T ENGINEERING CO., LTD., a Thai subsidiary of UMETOKU Co., Ltd. (Headquarters: Osaka prefecture )
In recent years, mid-tier enterprises and SMEs have shown a growing interest in investing in Thailand, and this has led to increasing demand and interest for finance leases related to capital investment by these companies. Loans under the credit line will flexibly provide the long-term foreign currency funds required for finance leases by such mid-tier enterprises and SMEs, and thus support the overseas business deployment of Japanese mid-tier enterprises and SMEs, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese mid-tier enterprises and SMEs, with a view to maintaining and strengthening the international competitiveness of Japanese industries.
- *1 See Press Release on March 10, 2015