- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
April 20, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today two agreements in the total amount of up to about USD1,477 thousand (JBIC portion) based on a credit line*1 for supporting the overseas business deployment of Japanese mid-tier enterprises and small and medium-sized enterprises (collectively SMEs) already signed with PT. SMFL Leasing Indonesia (SMFLIN), an Indonesian subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL). The loans are cofinanced with a private financial institution.
The individual loan agreements signed under this credit line will secure funding from SMFLIN in lease financing for the facilities required to conduct the manufacturing and sales business of automobile parts by PT. Kohwa Precision Indonesia, an Indonesian subsidiary of Kohwa Holdings Co., Ltd. (headquarters: Toyoake-shi, Aichi Prefecture), and the surface processing business of automobile parts by PT. Surteckariya Indonesia, an Indonesian subsidiary of SURTECKARIYA Co., Ltd. (headquarters: Kariya-shi, Aichi Prefecture).
In recent years, against the background of robust economic growth in Indonesia, Japanese companies have been accelerating their business expansion, with SMEs showing growing intention to invest in the country. Accordingly, there are increasing interest and needs for utilizing financing leases, as Japanese SMEs make capital investments. These loans under the credit line will provide long-term foreign currency funds flexibly for the finance leasing required for the business operations of SMEs conducted in Indonesia and other countries, and thus support the overseas business deployment of Japanese SMEs. Thereby, they 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 SMEs, with a view to maintaining and strengthening the international competitiveness of Japanese industries, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.