Bangkok--18 Oct--KBank To commemorate the celebration of 120 years of Thai-Japanese diplomatic relations, KASIKORNBANK in cooperation with the Japan Bank for International Cooperation (JBIC) will provide a total of THB7 billion in loan facilities to SMEs in Thailand having business ties with Japan. Credit limits will be granted up to THB525 million per borrower, with installments of up to 14 years. Mr. Takaya Naito, Resident Executive Director for Asia and Oceania, Japan Bank of International Cooperation (JBIC) said that JBIC has a policy to support small and medium enterprises (SMEs) which are regarded as key economic contributors to each country. Healthy SMEs can thus ensure the prosperity of a country’s economy. In Thailand, most SMEs are financially sound to a degree, though some of them fall short of the long-term financing needed for their business operations. KBank is among the Thai banks that have given staunch support to SMEs, and has steadily launched services and activities catered to this business segment. JBIC has thus picked KBank as their business alliance to provide SMEs with long-term loan facilities totaling THB7 billion. This cooperation is as part of their effort to enable SMEs to better and effectively access to loan financing to ensure long-term and sustainable development of their businesses. Mr. Banthoon Lamsam, Chief Executive Officer, KASIKORNBANK, revealed that KBank, in cooperation with JBIC, will launch ‘K-J Related Credit’, featuring loan facilities totaling THB7 billion, or approximately USD200 million, to SMEs operating in Thailand, with loan terms of up to 14 years. The financing packages being offered are more comprehensive than ever, and are aimed at ensuring SMEs of more sustainable investment opportunities. The fund has been set up by JBIC together with 8 Japanese banks to extend loans via KASIKORNBANK, which is the first commercial bank in Thailand that has been selected for this kind of cooperation where loan-facilities will be re-extended to SMEs whose sales are between THB50 million -THB5 billion in Thailand. The maximum credit limit can be up to THB525 million or USD15 million, per borrower who can select the loan currency from the choices of THB, USD or Yen without a SWAP fee. The installment term can be from 1-7 years and can be extended up to the maximum of 14 years. In addition, borrowers can choose their desired type of lending rate, either a fixed or floating one, where the interest rate will be based on the creditworthiness of each customer. SMEs wishing to obtain loan-facilities from this program must be Japanese businesses in Thailand or Thai companies that have business relations either directly or indirectly with a Japanese company over the last 2 years, or be a Thai company that has plans to enter into a joint venture with a Japanese company in the next 2 years, including current Thai-Japanese joint ventures in Thailand. However, the business must not involve production or trade military armaments or environmentally hazardous products. Mr. Banthoon has stated that this KBank-JBIC cooperation will be an alternative for Thai entrepreneurs and Japanese businesses in Thailand that are in need of working capital. SMEs will benefit from this loan-facility tremendously because they can choose the currency of the loan that best suits them from 3 major currencies. This will help reduce risk from forex rate volatility that may occur in the foreseeable future. The maximum loan is THB525 million per borrower and will thus enable entrepreneurs to gather sufficient capital for business operations or expansion. Moreover, the extended loan repayment period up to the maximum of 14 years will help SMEs get exact long- term working capital to carry on with their business. The reduced installment repayment burden each year will enable entrepreneurs to fully exert themselves in implementing long-term business plans and product development.