- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
February 24, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today an agreement in the amount of up to about USD1,635 thousand (JBIC portion) based on a credit line*1 for supporting overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (collectively SMEs) already signed with PT. SMFL Leasing Indonesia (SMFLIN), an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL). The loan is cofinanced with a private financial institution.
The individual loan agreement signed under this credit line will fund from SMFLIN in lease financing, PT. Asahi Forge Indonesia, an Indonesian subsidiary of ASAHI FORGE CORPORATION (head office: Aichi Prefecture), for facilities required to conduct the manufacturing and sales business of automobile parts.
In recent years, against the background of robust economic growth in Indonesia, Japanese companies have been accelerating business expansion, with mid-tier enterprises and SMEs showing growing intention to invest in the country. Accordingly, there are increasing interest and needs for utilizing financing leases, as Japanese mid-tier enterprises and SMEs make capital investments. This loan under the credit line will provide long-term foreign currency funds flexibly for finance leasing required by business operations of mid-tier enterprises and SMEs conducted in Indonesia and other countries, and thus support the overseas business deployment of Japanese mid-tier enterprises and SMEs. Thereby, they will contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, with a view to maintaining and strengthening the international competitiveness of Japanese industries, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.