- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
December 24, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD3.5 million (JBIC portion) with Toyo Denso Co., Ltd. (Toyo Denso; Headquarters: Tokyo; Executive President: Kiyoshi Koide). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. with the overall cofinancing amount reaching USD5 million.
This loan is intended to finance VIETNAM TOYO DENSO CO., LTD. (VTD), a Vietnamese subsidiary of Toyo Denso, for the manufacturing and sales business of automobile electronic components. The funds are used for building the additional factory of VTD.
Toyo Denso is a mid-tier enterprise manufacturing and selling automobile electronic components such as power window switches and combination switches, and established VTD in November 2006 as the manufacturing and sales base in North America and other regions. As demand for automobiles is expanding in North America and other regions, Toyo Denso plans to further expand its business by strengthening the production capacity of VTD and thereby expand sales to automobile manufacturers doing business globally. Thus, this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries through support for the overseas business deployment of Toyo Denso.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs), in growing markets such as Vietnam, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.