- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
September 22, 2014
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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today three loan agreements, amounting up to USD1.531 million (JBIC portion) with Bangkok Mitsubishi UFJ Lease Co., Ltd. (BMUL), a Thai subsidiary of Mitsubishi UFJ Lease & Finance Company Limited, as the first individual loans based on the credit line*1 previously signed for supporting overseas business deployment of Japanese mid-tier enterprises as well as small and medium-sized enterprises (SMEs). These loans are cofinanced with private financial institutions, which brings the overall cofinancing amount to USD2.252 million.
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These individual loans under the credit line are intended to provide necessary lease financing to HAL ALUMINUM (THAILAND) CO., LTD., a Thai subsidiary of HIROSHIMA ALUMINUM INDUSTRY CO., LTD. (Headquarters: Hiroshima Prefecture) in leasing the production facilities from BMUL for manufacturing and sales business of automobile parts.
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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. Accordingly, the interest and need of lease financing for capital investment by Japanese SMEs are growing. Thus, these loans contribute to maintaining and strengthening the international competitiveness of Japanese industries through supporting appropriately and timely the overseas business deployment of Japanese SMEs by extending long-term funds in the foreign currency for lease financing under the credit line.
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As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies including SMEs, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Note
- *1 See Press Release on April 1, 2014.