Individual Agreement Based on Credit Line for SMFL Subsidiary in Indonesia
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs by Promoting Finance Lease
- 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 today a loan agreement amounting up to approximately USD253 thousand (JBIC portion) with PT. SMFL Leasing Indonesia (SMFLIN), an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited. This agreement is 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 SMFLIN. The loan is cofinanced with private financial institutions.
The individual loan agreement signed under this credit line will secure funding from SMFLIN in lease financing for facilities required by PT MIZUSHIMA METAL WORKS INDONESIA, an Indonesian subsidiary of MIZUSHIMA PRESS KOGYO CO., LTD. (Headquarters: Okayama Prefecture), to conduct its automotive parts manufacturing and sales business.
In recent years, against the background of robust economic growth in Indonesia, Japanese companies have been accelerating their business expansion, with mid-tier enterprises and SMEs also showing a growing interest in investing in the country. Accordingly, demand and interest for finance leases for capital investment by Japanese mid-tier enterprises and SMEs are growing. Loans under the credit line will flexibly provide long-term foreign currency funds required for finance leases of such mid-tier enterprises and SMEs, 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 31, 2014.