- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
March 31, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 28 a loan agreement totaling up to USD40 million (JBIC portion) with PT SURYA ARTHA NUSANTARA FINANCE (SANF). The loan is cofinanced with Mizuho Bank, Ltd. (MHBK; facility agent), the Tokyo branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC), and Sumitomo Mitsui Trust Bank, Limited (SMTB), with the total cofinancing amount adding up to USD80 million.
The loan is intended to finance leasing and sales financing business of construction machinery conducted in Indonesia by SANF in which PT Sedaya Multi Investama, an investment company under the Indonesian business conglomerate PT Astra International Tbk, Marubeni Corporation, and PT Marubeni Indonesia have respectively a 60 percent, 35 percent and 5 percent equity stake.
The construction machinery market in Indonesia continues to be an important market with high existence of Japanese companies, as its demand is expected to grow both in the construction industry and agricultural sector, regardless the declining trend in the mining sector. Given this prospect, this loan will underpin local sales expansion of Japanese-affiliated construction machinery manufacturers through financing SANF that has more than 80 percent of dealings, and thereby contribute 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 companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.