SBI Shinsei to Partner with over 20 Regional Banks on Large Loans

Tokyo, Aug. 6 (Jiji Press)–Japan’s SBI Shinsei Bank has said it will establish a framework to collaborate with more than 20 regional banks on large-scale loans. According to its announcement on Wednesday, SBI Shinsei Bank will consider syndicated loans worth around 100 billion yen under the framework for sectors with growing funding demand, including mergers and acquisitions, data centers and renewable energy projects. The initiative is intended to expand profit opportunities for regional banks and strengthen their management capabilities. So far, 14 regional banks have decided to participate, including Joyo Bank in Mito, Ibaraki Prefecture, Ashikaga Bank in Utsunomiya, Tochigi Prefecture, San ju San Bank in Yokkaichi, Mie Prefecture, Tottori Bank in Tottori, Tottori Prefecture, and San-in Godo Bank in Matsue, Shimane Prefecture. About 10 more banks are expected to join later this month. Traditionally, large-scale loans in Japan have often been arranged by the country’s three megabanks, with regional banks typically participating in syndicated loans organized by them. In the new initiative, regional banks will work with SBI Shinsei Bank to expand fee income and other revenue sources by taking a more active role in the origination of large-scale loans. END [Copyright The Jiji Press, Ltd.]