- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
April 9, 2015
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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a general agreement for a credit line, amounting up to USD28 million (JBIC portion) with PT. Mitsubishi UFJ Lease & Finance Indonesia (MULI), an Indonesian subsidiary of Mitsubishi UFJ Lease & Finance Company Limited, to support the overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (collectively SMEs). The credit line is cofinanced by private financial institutions, bringing the overall cofinancing amount to USD40 million.
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This credit line is intended to provide necessary lease financing for capital investment by overseas subsidiaries of Japanese SMEs conducting business in Indonesia and other countries, utilizing this credit line provided to MULI.
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In recent years, Indonesia's economy has been growing steadily and Japanese companies are accelerating their business expansion. Japanese SMEs are also showing growing interest in investing in Indonesia, accordingly, the demand for lease financing for capital investment by Japanese SMEs is growing.
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Given these circumstances, JBIC will appropriately and timely support the overseas business deployment of Japanese SMEs by extending medium and long-term funds in U.S. dollars to MULI, which has a wide range of business relationships with Japanese SMEs.
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As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, including SMEs, in growing markets such as Indonesia, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.