- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
June 1, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement amounting up to MXN243 million (JBIC portion) with JTEKT AUTOMOTIVE MEXICO, S.A. DE C.V. (JAMX), a Mexican subsidiary of JTEKT CORPORATION (JTEKT). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo Mitsui Banking Corporation, which brings the overall cofinancing amount to MXN405 million.
The loan is intended to finance, in local currency, the automobile electric power steering system manufacturing and sales business of JAMX in the state of San Luis Potosí, Mexico.
In recent years, a number of automobile manufacturers and suppliers including Japanese companies have started or expanded business in Mexico, against the backdrop of its growing importance as an export base for the North American automobile market. In anticipation of growing production of automobiles in Mexico in the future, JTEKT plans to respond appropriately to increasing demand from automobile manufacturers, by starting local production of its electric power steering systems. Thereby, the loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries through supporting the overseas business deployment of JTEKT.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, in growing markets such as Mexico, 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.