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 loan agreement totaling USD1 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) in the U.S., which conducts the business of producing and selling spirits.^*1The total amount required for acquisition is about USD16 billion. This loan is cofinanced with private financial institutions.
    
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 long-term foreign currency 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 Related to this acquisition, JBIC signed on July 31, 2014, subordinated loan agreements totaling up to JPY50 billion and USD1.5 billion (respectively JBIC portion) with Suntory. See details in Press Release on July 31, 2014.