- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
March 5, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD9.03 million (JBIC portion) with KOTANI CORPORATION (KOTANI; Headquarters: Hyogo Prefecture; President: Masahiro Kotani). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank, Ltd. (MHBK), with the overall cofinancing amount reaching USD12.9 million.
The loan is intended to finance KOTANI for establishing the new Kotani (Zhangjiagang) Co.,Ltd., a subsidiary in the People's Republic of China for the purpose of manufacturing and selling forged products for automobiles (specifically transmission parts).
KOTANI, a small and medium-sized enterprise (SME) established in 1974, has manufactured forged products used for automobiles, and in January 2014, it established Kotani (Zhangjiagang) Co.,Ltd. in China. Given the prospect of the expanding automobile market supported by robust economic growth in China, KOTANI plans to expand its manufacturing and sales of forged products for automobiles through Kotani (Zhangjiagang) Co.,Ltd. The locally manufactured products in this venture will be primarily supplied to Japanese affiliated auto parts manufacturers. This loan will contribute to maintaining and improving the international competitiveness of the Japanese industries through support for overseas business deployment of KOTANI.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs in growing markets such as China, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.