Thai Baht Loan for Automotive Parts Manufacturing and Sales Business of Japanese Company in Thailand
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs with Local Currency Loan
- 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 THB185 million (JBIC portion) with SUMMIT KEYLEX (THAILAND) CO., LTD. (SKT), a Thai subsidiary of KEYLEX CORPORATION (KEYLEX; Headquarters: Hiroshima Prefecture; President: Mitsuru Iwao). The loan is cofinanced with Sumitomo Mitsui Banking Corporation, bringing the total cofinancing amount to approximately THB264 million.
This loan is intended to finance the automotive parts manufacturing and sales business conducted by SKT in Chonburi Province, Thailand. The funds will be used to construct a new manufacturing plant and install new facilities.
KEYLEX, a small and medium-sized enterprise (SME) engaged in the manufacturing and sales of automobile body parts and components, established SKT in February 2013*1
. In anticipation of a continued increase in demand for automotive parts in Thailand backed by economic growth, KEYLEX seeks to expand its share of the automotive parts market in the country. Through the support of such overseas business deployment of KEYLEX by Thai baht loan, this financing will contribute 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 companies, including mid-tier enterprises and SMEs, in growing markets such as Thailand, by drawing on its various financial facilities and schemes, including loans to meet the need for local currency funding, for structuring projects and performing its risk-assuming function.
- *1 JBIC signed in January 2014 a loan agreement amounting to JPY700 million with KEYLEX to finance the establishment of SKT. See Press Release on January 22, 2014 for further details.