- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
April 1, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a general agreement for offering a credit line, amounting up to USD28 million (JBIC portion) with Bangkok Mitsubishi UFJ Lease Co., Ltd. (BMUL), a Thai subsidiary of Mitsubishi UFJ Lease & Finance Company Limited (MUL), for supporting overseas business deployment of Japanese mid-tier enterprises as well as small and medium-sized enterprises (SMEs). The credit line is cofinanced with The Bank of Tokyo Mitsubishi UFJ, Ltd., which brings the overall cofinancing amount to USD40 million.
This credit line is intended to provide necessary lease financing for capital investment by overseas subsidiaries of Japanese SMEs and conducting business in Thailand and other countries, utilizing this credit line offered to BMUL.
In recent years, Thailand's economy has been growing steadily and Japanese companies are accelerating their business expansion, as well as SMEs'growing interest to invest, in Thailand*1. Accordingly, the interest and need of lease financing for capital investment by Japanese SMEs are growing. Given the circumstances, JBIC will support appropriately and timely the overseas business deployment of Japanese SMEs by extending mid- and long-term funds in U.S. dollars to BMUL, collaborating with MUL which has a wide range of business relationships with Japanese SMEs.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies including SMEs, in growing market such as Thailand, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Thailand ranked the 3rd (moved up from 4th place in the last survey) in " Ranks of Promising Countries/Regions for Business Development over Medium Term (the next 3 years or so) " of FY2013 Survey (the 25th) Report on Overseas Business Operations by Japanese Manufacturing Companies, conducted by JBIC. For the detail, see a press release on November 29, 2013.