- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
September 24, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD37 million (JBIC portion) with KAIHARA CORPORATION, (KAIHARA; Headquarters: Hiroshima Prefecture; President: Mamoru Kaihara). The loan is cofinanced with The Hiroshima Bank Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd. and The Shoko Chukin Bank, Ltd., bringing the overall cofinancing amount to USD58 million.
This loan is intended to finance the establishment of KAIHARA (THAILAND) CO., LTD. (KTC), a KAIHARA subsidiary in Thailand, for the manufacturing and sales of denim fabric.
KAIHARA, which started business in 1893, is a small and medium-sized enterprise (SME) that manufactures and sells denim fabric. The company is Japan's largest denim fabric maker that has established an integrated denim production system from the spinning of raw cotton, dyeing, weaving, up to finished fabrics. KAIHARA is known and highly valued globally for its Aizen (indigo dyeing) technology developed since its inception, and supplies high quality denim to domestic and overseas apparel manufacturers. The company plans to further increase its market share by establishing the first overseas base, KTC, in Thailand in March 2014, while the global denim market is expected to steadily expand centering emerging countries backed by the economic growth and population increase. The loan will support such overseas business deployment of KAIHARA and thereby 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, in growing markets such as Thailand, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.