- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
September 28, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on September 25 a loan agreement amounting up to USD50 million (JBIC portion) with Hotai Finance Co., Ltd. (HFC), a company in Taiwan. The loan is cofinanced with The Keiyo Bank, Ltd., The Higashi-Nippon Bank, Ltd., The Chiba Bank, Ltd., The Shizuoka Bank, Ltd., The Shiga Bank, Ltd., The Ogaki Kyoritsu Bank, Ltd., and Mizuho Bank, Ltd., bringing the total cofinanced amount to USD100 million, with JBIC providing a partial guarantee on the cofinanced portion.
This loan is intended to finance part of the necessary funds for the sales financing business of Toyota and Lexus brands automobiles by HFC in Taiwan.
Taiwan's automobile market is growing backed with the country's steady economic growth, and continues to be an important market for Japanese automobile manufacturers that have a large presence there. In recent years, non-Japanese automobile manufacturers have been expanding their market shares in the Taiwanese automobile market, and the loan has become a strategically important tool for Japanese automobile manufactures in maintaining and expanding their market shares in Taiwan. This loan will financially support the overseas business deployment of such Japanese automobile manufactures, and thereby contribute to improving and strengthening the international competitiveness of the Japanese automobile industry by supporting the automobile sales financing business.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.