Individual Agreement Based on Credit Line for MUL Subsidiary in Thailand
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 20 a loan agreement in the amount of up to approximately USD561 thousand (JBIC portion) with Bangkok Mitsubishi UFJ Lease Co., Ltd. (BMUL), a Thai subsidiary of Mitsubishi UFJ Lease & Finance Company Limited (MUL). 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 BMUL. The loan is cofinanced with private financial institutions, bringing the total cofinancing amount to approximately USD825 thousand.
The loan agreement will secure funding from BMUL in lease financing for the facilities required by KTX PRECISION (THAILAND) CO., LTD., a Thai subsidiary of KTX Corporation (Headquarters: Aichi prefecture), to conduct its automotive parts manufacturing and sales business.
In recent years, Japanese mid-tier enterprises and SMEs have shown a great interest in investing in Thailand. In consequence, finances leases are attracting high interest and demand from these mid-tier enterprises and SMEs for their capital investment. 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 April 1, 2014.