Loan for Construction Machinery and Transportation Equipment Leasing Business of Sumitomo Mitsui Finance and Leasing Company’s Thai Subsidiary
Supporting Overseas Business Expansion of Japanese Manufacturers through Local Currency Denominated Financing
- Region: Asia
- Machinery and Equipment
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed a loan agreement*1
amounting to up to THB1,200 million (JBIC portion) with SMFL Leasing (Thailand) Co., Ltd. (SMFLT), a Thai 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 THB2,000 million.
The loan is intended to provide the funds in the local currency required by SMFLT to conduct the construction machinery and transportation equipment leasing business in Thailand.
The construction machinery and transportation equipment leasing market in Thailand is expected to continue to grow on the back of the country’s strong economic growth. This loan will support expansion of sales channels for Japanese products in Thailand, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects, including local currency loans, and by performing its risk-assuming function.
The loan agreement was signed on February 9, 2021.