RHB gets another USD100 million from JBIC
KUALA LUMPUR, March 24, 2008: RHB Bank Berhad (“RHB Bank”) had today signed another agreement with Japan Bank for International Cooperation (“JBIC”) for a long-term two-step Untied loan of USD100million. JBIC is the world’s largest governmental financial arm. This loan is co-financed with two other Japanese Mega banks, Sumitomo Mitsui Banking Corporation (“SMBC”) and Mizuho Corporate Bank (“Mizuho”), and is guaranteed by JBIC.
The two-step Untied loan aims to help develop the small and medium sized enterprises (SME’s) especially those in the greenfield, energy, electrical & electronics (E&E), motor & chemical sectors.
“RHB Bank has a good track record and a sizeable base of small and medium sized industries (SMIs) customers which supports the target sectors stipulated above. In line with the Japan Malaysia Economic Partnership Agreement (“JMEPA”), which was effective since July 2006, this loan aims to further strengthen the economic relation between the two countries by way of supporting the SMIs”, said Mr Yoshihiko Morita, The Deputy Governor and Managing Director of JBIC.
Mr Morita added that Malaysia is one of the major ASEAN countries with a strong manufacturing industry base and RHB Bank is the suitable window to disburse this loan in view of its solid management, good track record and has a wide and balanced portfolio of SMEs especially those in the manufacturing sector.
Signing on behalf of JBIC was its Deputy Governor and Managing Director, Mr Yoshihiko Morita, while YBhg Datuk Azlan Zainol, Chairman of RHB Bank, signed on behalf of RHB Bank.
According to YBhg Datuk Azlan Zainol, this being the second Untied loan from JBIC marks another significant milestone and recognition for RHB Bank to enhance its regional financial and economic integration. It also clearly indicates JBIC’s confidence and familiarity with the RHB Banking Group’s track record.
Datuk Azlan said, “This USD long term loan facility is attractively priced & packaged which will benefit the Bank with a long term stable fund and boost RHB Bank to fulfill its objective of strengthening its financial support to the SMEs in the medium to longer term tenures again since the first JBIC loan of USD100 million strengthened the market and had boost the Malaysian SME sector.”
“RHB Bank and the Banking Group as a whole also feel honoured to play a pivotal role in developing and strengthening the financial and economic interlinkages between Malaysia & Japan. This is in line with the JMEPA which was effective since July 2006” he added.
RHB’s 2 previous partnerships with JBIC include:-
- a USD100million Untied Loan from JBIC to RHB to support the small and medium industries in Malaysia signed in December 2005. RHB was the first private financial institution to receive a loan of this size from JBIC; and
- Carbon Credit Scheme to support Clean Development Mechanism projects in the greenfield area in Malaysia which was signed in July 2006.
RHB Bank is the fourth largest bank in Malaysia with 183 branches and total asset size of RM85.9 billion. It has one of the largest SME portfolios in the country with about 100,000 SME customers.
The RHB Banking Group, a leading financial services group in Malaysia, has a long-standing relationship with Japan through its strategic alliance with Sumitomo Mitsui Banking Corporation, Tokyo spanning over 20 years and this is the third cooperation that the RHB Banking Group has with JBIC.
JBIC, which is wholly owned by the Japanese Ministry of Finance, is the world’s largest government financial arm and the second largest financial institution after the World Bank. Prior to JBIC’s partnership with RHB Banking Group, its activities have revolved around government-to-government funding and financing development and infrastructure projects in emerging economy countries.
Issued by Corporate Communications, RHB Capital Bhd, on behalf of RHB Bank Berhad. For more information, please call Adeline Ong at 012-8833345 or Kala Sukumar at 012-7100324.
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