- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Untied Loans
April 19, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today an untied loan agreement in the aggregate of up to 7.5 billion yen (JBIC portion:4.5 billion yen) with KASIKORNBANK Public Company Limited (KBANK), a commercial bank in the Kingdom of Thailand (Thailand). The other 11 cofinancing banks are: The Bank of Tokyo-Mitsubishi UFJ, Ltd. (agent), The Hokuto Bank, Ltd., The Shonai Bank, Ltd., The Toho Bank, Ltd., The Hachijuni Bank, Ltd., The Shizuoka Bank, Ltd., The Bank of Kyoto, Ltd., The Chugoku Bank, Ltd., The Hiroshima Bank, Ltd., The Bank of Fukuoka, Ltd. and The Higo Bank, Ltd.*1 JBIC provides a guarantee for the portion cofinanced by the private financial institutions.
- This loan is intended to support the recovery and business operation efforts of a number of Japanese local affiliates in Thailand that suffered direct or indirect devastation caused by the unprecedented flood that occurred in Ayutthaya and Pathumthani Provinces, near the capital city of Bangkok last year. It will provide long-term sub-loans to subsidiaries of Japanese mid-tier firms and small and medium enterprises (SMEs) as well as those local firms that constitute supply chains for Japanese affiliates through KBANK serving as an intermediary financial institution. This loan is thereby aiming at a speedy recovery of Japanese business activities, while supporting rehabilitation and rebuilding from the damage of the serious flood that hit Thailand last year.
- To date, KBANK has been active in providing service for Japanese affiliates in Thailand. JBIC signed in 2011 a memorandum of understanding (MOU) with KBANK with the aim of supporting local business expansion of Japanese mid-tier firms and SMEs. In this MOU, 23 Japanese regional banks participated, forming business alliances with KBANK.*2 Apart from these arrangements, KBANK has been making vigorous efforts to support Japanese mid-tier firms and SMEs and promote Japanese investments by forming direct alliances with 19 Japanese regional banks. Based on such good relations with this bank, 10 regional banks across Japan having alliances with KBANK participated in this cofinancing loan.
- JBIC will continue to strengthen close cooperative ties between the two countries through promoting improvements in the investment climate for Japanese firms based on the importance of economic relations between Japan and Thailand, which has become an important operating base for Japanese businesses.
- *1 The banks cited above follow the order in the common code of financial institutions in Japan.
- *2 See News Release on May 30, 2011.