Thai Baht Loan for ESCO Business of Thai Subsidiary of West Holdings Corporation
Supporting Overseas Business Expansion of Japanese Companies through Local Currency Denominated Financing
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on June 20 a loan agreement amounting up to THB180 million (JBIC portion) with WEST International (Thailand) Co., Ltd. (WIT), a Thai subsidiary of West Holdings Corporation (West). The loan is co-financed with the Bank of Ayudhya Public Company Limited, which is a consolidated subsidiary of Mitsubishi UFJ Financial Group, Inc., bringing the total co-financing amount to THB300 million.
This loan is intended to provide the necessary funds for WIT to expand its ESCO business*1
mainly for Japanese affiliates in Thailand. The loan follows a similar loan made to WIT in March 2020*2
West entered the ESCO business in 2014, and in 2016, it established WIT as their first overseas subsidiary in Thailand, where many Japanese companies are entering the market. As renewable energy has been drawing attention globally in recent years for initiatives toward realizing a decarbonized society, WIT is promoting the installation of renewable energy equipment and facilities for Japanese affiliates in Thailand. This loan is intended to support West's overseas business expansion, and thus contributes to maintaining and improving the international competitiveness of Japanese industries, as well as to the preservation of the global environment through utilizing renewable energy.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business development of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, including local currency loans, and performing its risk-assuming function.
ESCO: Energy Service Company. A business model in which comprehensive service related to energy saving is provided to the customer, and a portion of the energy saving effect is received as remuneration.