Loan for Mixed Use Development Project by Japanese Company in Myanmar
Supporting Overseas Business Development of Japanese Company as part of Promoting Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed today a loan agreement amounting up to approximately USD47 million (JBIC portion) with Yangon Museum Development Pte. Ltd. (YMD), a Singaporean subsidiary of Tokyo Tatemono Co., Ltd. (Tokyo Tatemono), and Fujita Corporation (Fujita) that was jointly established with the Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). This loan is provided as part of JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG)*1
. The loan is co-financed by Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd., bringing the total co-financing amount to USD144 million.
Y Complex Company Limited was established in Myanmar by YMD jointly with Myanmar company Yangon Technical and Trading Company Limited. This loan is intended to finance the company's development and operation of a development project of real estate complex to be built in Yangon, Myanmar, consisting of a hotel, service apartments, offices, and commercial facilities.
The business expansion of Japanese companies in Myanmar is increasing steadily. As the country's largest city, Yangon is expected to continue attracting the interest of Japanese companies looking to expand their business in the country. Through this project, Tokyo Tatemono and Fujita will provide services such as Japanese quality office and living spaces for customers, including Japanese companies expanding in Myanmar. The companies plan to increase their know-how in the overseas real estate field in addition to increasing their earnings. This project not only supports the overseas business expansion of Tokyo Tatemono and Fujita, but also will benefit Japanese companies advancing their business in Myanmar. It contributes to maintaining and enhancing its international competitiveness. In addition, this project will incorporate the Building Energy Management System (BEMS) which is installed in the latest style buildings in Japan. This project will thus contribute to global environment preservation through the efficient use of energy throughout buildings.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies in growing markets such as Myanmar, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
New real estate complex to be built
JBIC launched, on July 1, 2018, its Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG). This facility is aimed to provide a wide range of financing support for infrastructure development which is expected to help to preserve the global environment, including energy efficiency projects. For more details, see Announcement on June 28, 2018