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Loan for Denim Fabric Manufacturing and Sales Business of Japanese Company in Thailand
Supporting Overseas Business Deployment of Japanese SMEs

  • Region: Asia
  • Manufacturing and Services
  • Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
  • Overseas Investment Loans

September 29, 2015
  1. The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today two loan agreements totaling up to USD28,900 thousand (JBIC portion) with KAIHARA CORPORATION, (KAIHARA; Headquarters: Hiroshima Prefecture; President: Mamoru Kaihara). These loans are cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., The Hiroshima Bank Ltd. and The Shoko Chukin Bank, Ltd., respectively.
     
  2. These loans are intended to finance the expansion of KAIHARA (THAILAND) CO., LTD. (KTC)*1, a subsidiary of KAIHARA in Thailand, conducting denim fabric manufacturing and sales business.
     
  3. KAIHARA, which started business in 1893, is a small and medium-sized enterprise (SME) that manufactures and sells denim fabric.  The company is Japan's largest denim fabric maker and has established an integrated denim production system from the spinning of raw cotton, dyeing, weaving, up to finished fabrics. KAIHARA is well-known and highly rated globally for the Aizen (indigo dyeing) technology it has developed since its inception, and the company supplies high quality denim to domestic and overseas apparel manufacturers. The company plans to further increase its market share by expanding its first overseas base, KTC, in Thailand, established in March 2014, with the global denim market expected to steadily expand centering on emerging countries backed by economic growth and population increase. Thereby, these loans will contribute to maintaining and strengthening the international competitiveness of Japanese industries through supporting such overseas business deployment of KAIHARA.
     
  4. As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, in growing markets such as Thailand, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Note
  1. *1 In September 2014, JBIC signed a loan agreement for USD37,000 thousand to finance the establishment of KTC. See Press Release on September 24, 2014.

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