Maybank secures USD400 million total JBIC funding for Japanese-linked businesses
Maybank has signed an agreement with the Japan Bank for International Cooperation (JBIC) for an additional USD200 million funding facility, bringing to USD400 million the total financing it has received from JBIC todate.
The agreement was signed in Kuala Lumpur by Dato’ Sri Abdul Wahid Omar, President and CEO of Maybank and Mr Ryuichi Kaga, Resident Executive Officer for Asia and Oceania, JBIC.
Under the agreement, the USD200 million additional facility will be used to support customers which have business relations with Japanese enterprises, in Malaysia and other Association of South-East Asian Nations (ASEAN) member countries where Maybank or its subsidiaries operate.
In the first agreement for USD200 million between Maybank and JBIC which was signed in May 2009 and fully drawn down by 27 July 2009, the loan program was dedicated to industries in Malaysia which have business relations with Japanese enterprises.
Dato’ Sri Abdul Wahid Omar said that the facility reflects the confidence of JBIC in Maybank’s financial strength as well as its ability to support industries in Malaysia and other ASEAN countries which have business relations with Japanese enterprises.
“Given the strong trade links between Japan and ASEAN which in 2009 alone totalled over USD158 billion*, we believe that this new facility will go a long way in further boosting the level of business between Japan and Malaysia as well as the ASEAN region,” he said.
“With Maybank’s presence in 7 out of 10 ASEAN countries, especially our large network in Indonesia, the Philippines, Singapore, Vietnam and Cambodia, the total USD400 million JBIC funding will further boost our lending capacity to clients in the region and enhance our support to them as they leverage on the economic upturn,” he added.
Dato’ Sri Wahid also said that the long term nature of the facility provides the Bank with an opportunity to diversify its source of USD funding as well as further improve its US Dollar medium term funding structure. The facility will be repaid in 16 equal semi-annual installments commencing November 2011 until May 2019.
Meanwhile, Mr Ryuichi Kaga said this is the second loan that JBIC has extended to Maybank and is expected to promote business activities, including trade and investment as well as contribute to strengthening of mutually beneficial economic partnership among Japan, Malaysia and ASEAN countries.
“JBIC is very keen to further strengthen its relationship with Maybank, the largest commercial bank in Malaysia which also has a broad network in ASEAN countries.”
JBIC, established on 1 October 1999, is a wholly-owned institution of the Government of Japan. The principal activities of JBIC are to conduct the Government of Japan’s external economic policy and economic cooperation. Via co-financing agreements with commercial banks in Japan, JBIC provides long-term loans to foreign governments, banks and companies that have projects that contribute to economic development in the country of the borrower.