Loan for Cold Storage Business of Japanese Company in Thailand
Supporting Overseas Business Expansion of Japanese Company
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on December 24 a loan agreement amounting to up to THB450 million (JBIC portion) with Bangkok Cold Storage Service, Ltd. (BCS), a Thai subsidiary of Kawasaki Kisen Kaisha, Ltd. (Kawasaki Kisen). The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to THB750 million.
The loan is intended to finance the funds necessary for Kawasaki Kisen's Thai subsidiary BCS to build a new warehouse for its cold storage business in the province of Samut Prakan.
In its Management Plan in Fiscal Year 2021, Kawasaki Kisen aims to develop a global business, especially in Asia. The company particularly regards Thailand as one of the key logistics locations in Southeast Asia, where the economic growth is remarkable. Since its establishment in 1988, as Japanese companies started to expand their businesses to Thailand, BCS has been conducting the cold storage and logistics business based on its strong relationship with these Japanese companies, and it has recently planned to build the new warehouse in Thailand on the back of further needs for cold storage in the country.
The loan will support Kawasaki Kisen's overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry. Supporting the cold storage business, which helps to prolong the quality of perishable food and frozen food or prevent their quality deterioration, will also contribute toward reducing Thailand's food waste.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies by drawing on its various financial facilities, including loans to meet the need for funds in local currencies, as well as schemes for structuring projects and performing its risk-assuming function.