PROJECT FRONTLINE Support for overseas expansion of MTEs and SMEs, from restaurants to cutting-edge technology businesses
JBIC supports the diverse needs of mid-tier enterprises (MTEs) and small and medium-sized enterprises (SMEs). OSAWA Kanon and NAKAMUTA Tadahide share their insights into JBIC’s efforts and the real rewards of their work.
(left) Division 2 & Division 1 (East Japan)
Finance Office for SMEs
Industry Finance Group
OSAWA Kanon Joined JBIC in 2021. Assumed her current position after assignment to the Credit Department, where she engaged in corporate assessments and project financing management, followed by overseas training at JBIC’s Representative Office in Singapore. Graduated from Keio University, Faculty of Law.
(right) Finance Division for SMEs
Osaka Branch (West Japan)
Industry Finance Group
NAKAMUTA Tadahide Joined JBIC in 2020. Assumed his current position after assignment to the Treasury Department, where he engaged in payments and receipts, cash management, settlement, processing transactions, and other accounting work, followed by overseas training at JBIC’s Representative Office in Mexico City. Graduated from Hokkaido University, School of Agriculture.
“Bankers who make it their business to help” push for greater use of JBIC
“JBIC actively supports MTEs and SMEs by holding information sessions for regional banks, overseas investment seminars, and business matchmaking,” explains OSAWA Kanon of the Finance Office for SMEs.
NAKAMUTA Tadahide of the Osaka Branch's Finance Division for SMEs adds, “We want them to seriously consider the option of using JBIC when thinking of how to finance their overseas business.”
With divisions handling financing for MTEs and SMEs in eastern Japan in Tokyo and on the west side of the country in Osaka, about half of the total number of JBIC loans approved in FY2023 were for such enterprises.
One of JBIC's strengths is leveraging its role as a policy-based financial institution. Through co-financing with private sector institutions, JBIC provides cross-border financing, loans to Japanese companies for intercompany loans, and equity investments in their overseas subsidiaries. It also offers two-step loans through private sector banks.
Moreover, JBIC has some unique advantages. For example, in Indonesia, where foreign currency-denominated borrowing from overseas by local subsidiaries is restricted without specific credit ratings, private financial institutions can extend such loans under a JBIC guarantee.
The above examples are just some of JBIC’s financing schemes. Other forms are also available, such as two-step loans provided through private financial institutions, but all loans are based on co-financing with private financial institutions.
However, a lack of awareness of these benefits across Japan is a major challenge. JBIC must address this by providing proactive and agile support for business management concerns. “As 'bankers that make it their business to help,' we work actively as a team to find solutions to the problems of MTEs and SMEs, while supporting regional banks,” says NAKAMUTA.
The sheer volume of projects handled makes it difficult to visit every company, but OSAWA maintains close contact with clients and the staff in charge at co-financing regional banks. NAKAMUTA adds, “I make it a point to personally make as many visits as time permits.”
NAKAMUTA Tadahide shares his excitement on how appealing it is to learn about a broad range of industries, thanks to the diverse sectors supported by JBIC.
Co-financing with private financial institutions for diverse companies while also tackling social issues
JBIC's loan review process conducts consultations with clients and private financial institutions, document evaluations, and analysis of the company’s business strategy. Although a solid growth plan is vital for loans, approvals also consider public-minded goals such as environmental considerations (e.g. electric vehicles), energy security, or Japanese companies’ supply chain resilience.
Though JBIC loans may evoke an image of manufacturing and energy industries, its scope is much broader.
According to NAKAMUTA, “It’s true that manufacturing industries such as automotive are the core of our loans, but we also support sectors ranging from restaurants, food processing, and daily necessities to businesses at the cutting edge of science and technology. Our division captures this diversity with the catchphrase, 'from ramen shops to fusion energy.’”
In recent years, support to companies tackling social issues has also been increasing; an example is support for cutting-edge medical and pharmaceutical development in Australia. Meanwhile, secure supply chains are vital in the chip sector, and JBIC also provided support to a company that manufactures parts for semiconductor production equipment in Vietnam. OSAWA notes, “I am thrilled JBIC has been able to support the overseas expansion of Japanese companies that possess superb technologies.”
Australia is a research and development hub in the field of cutting-edge medicine.
NAKAMUTA was in charge of a loan to a rebuilder and seller of auto parts in Bangladesh, a country which imports a lot of Japanese used cars. JBIC has not handled many projects in Bangladesh, and this was a complex case with the loan provided through a third country. However, he looks back with a deep sense of accomplishment, saying, “Utilizing JBIC’s cumulative knowledge of international financing schemes, we were able to push the project forward by concluding multiple contracts.”
Tapping into overseas growth to support Japanese companies and industries
OSAWA, who studied international politics, says with a smile, “I chose JBIC because I wanted to work for the future of Japan and the world. I also find it rewarding to interact with various industries and support their growth.”
OSAWA Kanon speaks of how much she looks forward to experiencing and taking up challenges, not only in specific fields of business or countries, but in multiple arenas.
NAKAMUTA joined JBIC out of a strong desire to boost Japanese industry while tapping into growth overseas.
“I specialized in agricultural economics in school, and as part of my fieldwork I had many opportunities to talk to regional businesses. This has a lot in common with my current work, so I am realizing the future I had envisioned as a student.”
Looking to the future, OSAWA says, “I had the valuable opportunity to sit in on a discussion with government officials from Central and Eastern Europe concerning support for Ukraine and its neighboring countries. I would like to also be involved in work that considers the role JBIC can play between Japan and countries around the world.”
NAKAMUTA also speaks about his vision, saying, “This is related to my current work, but I would like to be involved in supporting startups and infrastructure and resource-related project financing.”
With high expectations and strong commitment, OSAWA and NAKAMUTA are set to chart a dynamic course ahead.
OSAWA Kanon, Division 2 & Division 1 (East Japan), Finance Office for SMEs, Industry Finance Group
NAKAMUTA Tadahide, Finance Division for SMEs, Osaka Branch (West Japan), Industry Finance Group
to MTEs and SMEs
SMEs are defined as companies with capital of up to JPY300 million or a regular workforce of up to 300 employees (in the case of manufacturing companies). MTEs are companies with capital under JPY1 billion. Support primarily targets businesses in developing regions, but loans are also possible for M&A financing or specific types of assistance in developed countries.
to MTEs and SMEs
