Loan for Manufacturing and Sales Business of Submarine Transmission Cables by UK Subsidiary of Sumitomo Electric Industries, Ltd.
Supporting Overseas Business Expansion of Japanese Company

• Region: Europe
• Infrastructures
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed a loan agreement^*1 amounting to up to GBP54 million (JBIC portion) with SUMITOMO ELECTRIC U.K. POWER CABLES LTD. (SEUK-CL), a UK subsidiary of Sumitomo Electric Industries, Ltd. (Sumitomo Electric). The loan is co-financed with a private financial institution, bringing the total co-financing amount to GBP90 million.
     
2. The loan is intended to provide the necessary funds for SEUK-CL to conduct submarine transmission cable manufacturing and sales business in Scotland, United Kingdom.
     
3. As countries around the world have increasingly turned their attention to renewable energy in recent years, as part of global efforts to realize a decarbonized society, the Scottish government aims to introduce up to 11 GW of offshore wind power capacity by 2030. Given that offshore wind power generation requires long-distance power transmission to remote consumption areas, demand for submarine transmission cables is expected to grow. Among others, the United Kingdom has the largest market for offshore wind power submarine cables in Europe, and market expansion is expected over the medium to long term. In its Mid-term Management Plan 2025, Sumitomo Electric aims to strengthen its supply capacity of high voltage direct current cables for large-scale grid interconnections, in preparation for the wider adoption of renewable energy in line with the advancement of a decarbonized society, while strategically positioning Europe as an important region.
     
4. This loan is intended to financially support the overseas business that Sumitomo Electric considers strategically vital, thereby contributing toward maintaining and improving the international competitiveness of the Japanese industry. In addition, the cables covered by this financing are essential equipment for realizing offshore wind power generation, which faces the challenge of long-distance power transmission to remote consumption areas. Their introduction will lead to the wider adoption of renewable energy. Accordingly, this loan will help global environmental preservation.
     
5. As Japan's policy-based financial institution, JBIC will continue to financially support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
     

Note

1. *1 
   The loan agreement was signed on July 25, 2025.