- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
- Guarantees
December 19, 2014
-
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD25 million (JBIC portion) with PT. Federal International Finance (FIF) incorporated in Indonesia. The loan is cofinanced with The Chugoku Bank, Ltd., The Shizuoka Bank, Ltd., The Chiba Bank, Ltd., The Gunma Bank, Ltd., The Hachijuni Bank, Ltd., The Hyakugo Bank, Ltd., Hyakujushi Bank, Ltd., The San-In Godo Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., Tokyo branch of The Hongkong and Shanghai Banking Corporation Limited and Mizuho Bank, Ltd, with the overall financing amount adding up to USD225million. JBIC provides guarantee to part of the portion cofinanced by the private financial institutions.
-
This loan is intended to partially finance FIF with the funds required for conducting sales finance business of Honda brand motorcycles in Indonesia.
-
The motorcycle market in Indonesia has been expanding, backed by its robust economic growth, and the country continues to be an important market for Japanese motorcycle manufacturers, which have been maintaining and increasing a large presence there. In the Indonesian motorcycle market, it is common to use sales financing at the time of purchase. Thus, to promote sales and increase market share in this market, sales financing is an important tool of business strategy for every motorcycle manufacturers. This loan will therefore support the overseas business deployment of a Japanese motorcycle manufacturer, and thereby contribute to maintaining and strengthening the international competitiveness of the Japanese motorcycle industry through support for sales financing of motorcycles.
-
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.