The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on September 20 a loan agreement amounting to up to approximately JPY4.2 billion (JBIC portion) with Banco Komatsu do Brasil S.A. (BKB), a Brazilian subsidiary of Komatsu Ltd. (Komatsu). The loan is co-financed with Banco Mizuho do Brasil S.A., bringing the total co-financing amount to approximately JPY7.1 billion.
This loan is intended to finance the necessary funds for BKB to conduct a sales finance business for Komatsu-branded construction and forestry machinery (collectively construction machinery) in Brazil.
Komatsu regards Brazil as a crucial area for its global business strategy as it is the biggest construction machinery market in Central and South America, accounting for the majority of the regional demand. Komatsu also aims to differentiate itself from competitors in the industry by not only offering high-quality products but also providing services throughout the value chain, from sales finance to after-market support. This loan will support increasing overseas sales of Komatsu’s construction machinery by providing necessary funds for its sales finance business, 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 and by performing its risk-assuming function.
