Individual Agreement Based on Credit Line with Singaporean Subsidiary of Sumitomo Mitsui Trust Panasonic Finance
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs by Promoting Finance Leases
- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on January 15 a loan agreement in the amount of up to approximately USD24 thousand (JBIC portion) with Sumitomo Mitsui Trust Leasing (Singapore) Pte. Ltd. (SMTLS), a Singaporean subsidiary of Sumitomo Mitsui Trust Panasonic Finance Co., Ltd. This is an individual loan agreement based on a credit line*1
for supporting the overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (SMEs) previously signed with SMTLS. The loan is cofinanced with private financial institutions, bringing the total cofinancing amount to approximately USD34 thousand.
The loan agreement will secure funding from SMTLS in lease financing for facilities required by KAMOGAWA VIETNAM CO., LTD., a Vietnamese subsidiary of Kamogawa Co., Ltd. (Headquarters: Kyoto prefecture), to conduct its cutting tool manufacturing and sales business.
In recent years, Vietnam has seen an increasing number of Japanese companies enter the market, with Japanese mid-tier enterprises and SMEs also showing a growing interest in investing in the country. In consequence, finance leases are gaining more interest and demand from these mid-tier enterprises and SMEs for their capital investment. The loans under the credit line will flexibly provide long-term foreign currency funds for finance leases required for the business operations of such companies, and thus support the overseas business deployment of Japanese mid-tier enterprises and SMEs, thereby contributing to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese mid-tier enterprises and SMEs, with a view to maintaining and strengthening the international competitiveness of Japanese industries.
- *1 See Press Release on October 5, 2015.