INTERVIEW: DBJ to Strengthen Investment Operations

Tokyo, May 20 (Jiji Press)–The Development Bank of Japan will strengthen its investment operations as part of corporate culture reform, President and CEO Seiji Jige has indicated. “We will transform our corporate culture to conduct long-term lending operations with the mindset of an investment firm,” Jige said in a recent interview. On Tuesday, the state-backed lender announced a five-year medium-term management plan starting in fiscal 2026, including the supply of 3 trillion yen in risk capital, including through investments. Jige said that the DBJ plans to invest in the infrastructure industry, such as electric power and telecommunications companies, as well as in the semiconductor and shipbuilding sectors, which are priorities for the government. Recognizing the challenges posed by the tense situation in the Middle East, including unstable oil product supplies, he said, “If there is a need for risk capital, we will step in.” While the new management plan also focuses on supporting regional economies, Jige noted that due to population decline, there are an increasing number of projects that do not meet conventional screening standards for investment and lending. He highlighted plans to expand funding for industries with regional characteristics by establishing investment quotas for DBJ branches nationwide and creating new units focused on local areas. Regarding Tokyo Electric Power Company Holdings Inc.’s consideration of a tie-up to accept external capital, Jige indicated that the DBJ could become involved, saying the bank may invest “if it would contribute to the reconstruction of Fukushima Prefecture and the growth of TEPCO.” END [Copyright The Jiji Press, Ltd.]