Loan for Acquisition of Beam Inc. in U.S.
Supporting Overseas M&A of Japanese Companies

• Region: North America
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a subordinated loan agreement with totaling up to JPY50 billion (JBIC portion) and USD1.5 billion (JBIC portion) with Suntory Holdings Limited (Suntory) to finance part of the funds required for acquiring Beam Inc. (now called Beam Suntory Inc. (Beam)). The total amount required for acquisition is about USD16 billion. This loan is cofinanced with private financial institutions. Also this loan is one form of hybrid finance^*1.
    
2. As Suntory has a strategic policy to strengthen the global operation of the spirits business, it has obtained the management right of Beam, which has a number of global brands, through this acquisition. Thereby, Suntory is setting sights on realizing global growth by strengthening the brand power of spirits markets in the U.S. and the world through incorporation of the sales and distribution networks owned by Beam and deepening of technological exchange between the two companies.
    
3. This loan will support a Japanese company by providing hybrid finance for obtaining long-term funds required for overseas M&A for its overseas expansion of existing business and development of new business. Thereby, it will contribute to the maintenance and strengthening of the international competitiveness of Japanese industries.
    
4. As Japan's policy-based financial institution, JBIC will continue to support overseas M&A activities of Japanese companies in cooperation with private financial institutions.

Note

1. *1 Although hybrid finance is classified as liabilities under the accounting rules, rating agencies treat some of the loan amount as capital when assessing the financial condition of the borrower.