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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed today a loan agreement totaling up to RMB500 million (JBIC portion) with Shanghai Sumitomo Mitsui General Finance and Leasing Co., Ltd. (SMFLCHS), a Chinese subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited. The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to RMB834 million.
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This loan is intended to finance SMFLCHS in local currency the necessary funds for the construction machinery leasing business in China, and will be used to purchase equipment to be leased.
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With the construction machinery leasing market in China expected to grow in the future backed by economic growth, leasing has become an important tool for affiliates of Japanese construction machinery manufacturers to maintain and expand their business. Thus, this loan to SMFLCHS will contribute to maintaining and strengthening the international competitiveness of Japanese industries by supporting the sales expansion of the construction machinery manufacturers.
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As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes, including loans to meet the needs of local currency funds, for structuring projects, and performing its risk-assuming function.
