- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
April 30, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling USD1.4 million (JBIC portion) with NISSHO ASTEC CO., LTD. (Nissho Astec; Headquarters: Osaka; President: Shoichi Sugita). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., reaching an overall cofinancing amount equivalent to USD2 million.
The loan is intended to finance the processing and piping business of stainless pipes of VINA ASTEC CO., LTD. (VASTEC), a subsidiary of Nissho Astec in Vietnam. The fund will be used to build its new production facility.
Nissho Astec, established in 1972, is a small and medium-sized enterprise (SME), manufacturing and selling stainless pipes, providing a wide range of products and services, including designing, cutting, welding and polishing. Nissho Astec has operated at a rental factory since the establishment of VASTEC in Vietnam in 2010, but now plans to expand the business by building its own production facilities to replace the rental factory that has become too small for its operation, while orders from the Japanese-affiliated companies in Vietnam are increasing steadily. Thus, this loan contributes to maintaining and strengthening the international competitiveness of Japanese industries through support for the overseas business deployment of Nissho Astec.
As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, in growing markets such as Vietnam, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.