- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
March 10, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a general agreement for setting up a credit line totaling up to USD28 million (JBIC portion) with SMFL Leasing (Thailand) Co., Ltd. (SMFLT), a Thai subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), for supporting overseas business deployment of Japanese mid-tier enterprises and small- and medium-sized enterprises (collectively "SMEs"). The credit line is cofinanced with private financial institutions, with the overall cofinancing amount reaching USD40 million.
This credit line is intended to provide lease financing for capital investment required by the overseas subsidiaries of Japanese SMEs to conduct business in Thailand and other countries. This is the second credit line following the one set up in December 2013.*1
In recent years, against the backdrop of Thailand's robust economic growth, Japanese companies have been accelerating their business expansion, and SMEs have shown growing interest in investment in Thailand. Accordingly, the interest in and need for financing leases for capital investment by Japanese SMEs are growing.
Given these circumstances, JBIC intends to provide appropriate and timely support for the overseas business deployment of Japanese SMEs by extending mid- and long-term funds in U.S. dollars to SMFLT, while collaborating with SMFL, which has a wide range of business relationships with Japanese SMEs.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, including SMEs, in such growing markets as Thailand, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.