JBIC to extend dollar loans to Sony, Toshiba to offset yen’s strength

Kyodo

The Japan Bank for International Cooperation said it will extend low-interest dollar loans to Sony Corp. and Toshiba Corp. through major Japanese banks to help finance their acquisitions of foreign companies, the first such loans as part of government efforts to counter the yen’s strength.

The government-backed financial institution said Thursday it will lend $819 million to Sony and $600 million to Toshiba to partially finance their acquisitions. The loans will be used for Sony’s full acquisition of the Sony Ericsson mobile phone joint venture founded by Sony and the Swedish telecommunications company, and Toshiba’s takeover of Swiss electrical meter company Landis+Gyr AG.

The loans will be part of a $43 billion credit line JBIC set up last October with three major Japanese banks to promote acquisitions by Japanese companies of overseas businesses.

The dollar funds will be the first loans provided as part of the credit line JBIC established with Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking and Mizuho Corporate Bank.