August 2022

User Guide
for JBIC’s MTEs
andSMEs Support
Scheme

JBIC, Providing Back-Up For MTEs
And SMEs As They Expand Overseas!
Leveraging technologies forged in the Japanesemarket to venture overseas
SUGAWARA Industry Co., Ltd. / Biotech Japan Corporation / ASANO CO., INC.
SYS inc. / Hakuzo Medical Corporation / Nasa Corporation

Interview with Associated Institutions

To support the passion of locally based companies
The Amagasaki Shinkin BankTokyo Metropolitan Small and Medium Enterprise Support Center

User Guide for JBIC’s MTEs and SMEs Support Scheme

JBIC, Providing Back-Up For MTEs
And SMEs As They Expand Overseas!

Loan
types

Cross-border loan/Domestic financeJapanese financial institutes&
JBIC

experience in international finance. For example,
JBIC provides loans in a variety of local currencies,

overseas markets in line with the businesses’

enterprises but also MTEs and SMEs, which
account for more than 99% of businesses inJapan. JBIC has been increasing its support forsuch as renminbi, Thai baht, Indonesian rupiah,
Indian rupee, Mexican peso, and South African
rand, as well as in Japanese yen, US dollars, andsupporting projects that have a major social
impact, such as solving environmental problems
and other social issues. JBIC has two points of

MTEs and SMEs every year since 2012. In
FY2021, it supported 116 projects, which wasapproximately 55% of the total number ofeuros, thereby reducing exchange rate risk.
Thirdly, JBIC provides support that leverages
its strengths as a Japanese policy-based financial

contact for MTEs and SMEs, one in Tokyo andprojects supported.
JBIC’ s support scheme for MTEs and SMEs
is available for (1) SMEs and individuals withcapital of JPY300 million or less or no more than
300 regular employees (in the case of
manufacturing businesses) as a general rule,and (2) MTEs other than SMEs with capital ofless than JPY1 billion. The kinds of projects thatare eligible for support under the scheme include
capital investments required for overseas
business and M&As.
The scheme has three major features. Firstly,
both cross-border loans and domestic financeare available through co-financing withprivate-sector financial institutions such as
regional banks and shinkin banks. JBIC also
provides two-step loans set up through some
private-sector banks and leasing companies.
Secondly, JBIC is able to offer diverse
financing schemes based on its extensive

institution. Various forms of support can beaccessed through JBIC’ s network of overseas
offices. In any overseas business, many different
applications and administrative processes will beneeded, but the procedures required with regard to
financing, such as approval from and registration
with local authorities, vary from country to country.
JBIC provides information on the overseas
investment climate, as well as the support
necessary in country, such as resolving problems
with local governments. Furthermore, if the target
market is a country that has concluded a bilateraltax treaty with Japan, withholding tax on interest
will be exempted, reducing the interest burden.
The kinds of support that JBIC has provided
in the past include helping overseas expansionof restaurants and service businesses, as well as
manufacturers set up plants and develop newmarkets. No matter how big or small the loan,

The process until the loan is decided is asfollows. First, JBIC interviews you to gain an

JBIC helps MTEs and SMEs venture into

BA NK

Parent company in Japan

Overseas subsidiary
In the case of domestic finance, the equity
investment, capital injection, or inter-company
loan is extended to the overseas subsidiary.

own strategies. It also has a policy of actively

Co-financing is available even if the terms and conditions (currency, term, interest rate, etc.) of the loan from JBIC
differs from the terms of the partnering private-sector financial institutions.
The upper limit of the loan from JBIC is 70% of the required funds.

the other in Osaka, so please feel free to contact
either of them.

overall picture of your project and to understandyour preferred loan conditions. Then, based onthat understanding, JBIC starts considering theloan framework, bringing in any private-sector
financial institutions that will provide co-finance.
Once all the parties are on the same page, theprocess moves through the loan application
process and onto the loan screening. At thescreening stage, the cooperation of theprivate-sector financial institutions that yourcompany regularly does business with isessential, because you will need to prepare
financial data and financial plans. Once the loan
has been decided, JBIC will issue a press
release to announce the project. Theseannouncements have quite a substantial impact
in that they generate a ripple effect, such as
discovering new customers or suppliers.

LoanamountNo specific limit has been set on the amount that can be loaned. Loan applications are screened, and decisions
are made on an individual basis, with the loan applicants’ preferences taken into account.

Loancurrency

In addition to USD, EUR, and JPY, loans can be extended in various other currencies (Thai baht, Indonesianrupiah, renminbi, Mexican peso, Indian rupee, South African rand, etc.).

Collateral,guarantee

Collateral and/or guarantees will be determined based on the individual screening and upon consultation with thepartnering private-sector financial institutions.

Administrative
procedures

Please feel free to contact Finance Office/Division for SMEs
in Tokyo or Osaka.

JBIC’s Support Scheme for Overseas Business by MTEs and SMEs

Eastern Japan
Finance Office for SMEs (Tokyo)

JBIC has established the following loan scheme in response to the financing needsof the increasingly diverse overseas businesses being pursued by MTEs and SMEs.

Eligibility

Cross-border loan
(USD/JPY/EUR/other currency)

Domestic finance

After two years of being tossed about by the COVID-19 pandemic, the world has started to move toward an era of livingwith the virus. A growing number of mid-tier enterprises (MTEs) and small and medium-sized enterprises (SMEs) are
setting their sights overseas in search of new markets and manufacturing locations. Let’s take a look at what kind of
support JBIC offers these companies as they expand their businesses overseas in this spirit of challenge.
JBIC actively provides loans to support
overseas business expansion not only by large

Both cross-border loans and domestic finance are available through co-financing with private-sector financial
institutions (regional banks/shinkin banks/city banks, etc.). JBIC also provides support through two-step loans set
up at certain private financial institutions and leasing companies.

Tel:+81-3-5218-3579

1 SMEs: In principle, companies and individuals withcapital of JPY300 million or less or with 300 or fewer
regular employees (in the case of manufacturing).

2 MTEs: Companies with capital of less than JPY1 billion.

*The deﬁnition of SMEs may vary in terms of capital size and employee numbers
depending on the industry. This scheme is not available for certain sectors

Western Japan
Finance Division for SMEs (Osaka Branch)Tel:+81-6-6345-4100(agriculture, forestry, ﬁsheries, ﬁnance, and insurance (excluding insurance
agencies and insurance services), and real estate (limited to leasing business ofresidential property and land for residential property). These sectors are treatedin the same way as large enterprises. Please contact JBIC for details.

Uses of funds

In principle, this scheme is only available to fund the below-mentioned projects in developing regions. However,projects in developed countries may also be eligible for certain specific sectors. Please contact JBIC for details.

Capital investment, M&As, etc.
23Processleading to loan
disbursement

First, JBIC interviews you to gain an overall picture of your project and to understand your preferred loan
conditions. JBIC then consults with the private-sector financial institutions with which JBIC will conduct
co-financing (generally the financial institutions with which your company regularly does business).
The specific steps leading to disbursement of the loan are as follows:

It usually takes around two months until the decision on the loan is made and two to three weeks until the loan isdisbursed after that decision.
(*It may take longer depending on the loan processes of the partnering financial institutions and local registration procedures.)Loan
consultation
Preliminary
consultation
Loan
application

Loan
screening

Consultation

Agreement on loan conditions

About your overseas investment projectand preferred loan terms and conditions

Amount, currency, repayment schedule, etc.,
Co-financing financial institutions, Financing scheme

Submission of required documentation
Financial statements (for three fiscal years in principle), Environmental screening form
(using prescribed form), Identity verification documents, Registration confirmation documents,
Investment plan summary (reference format available), Minutes, Articles of Incorporation, etc.

Company screening

Investment project screening

Environment screening

Financial data registration,
Quantitative andqualitative analysis

Analysis of financial plan and investment
project, Cash flow analysis

Environmental andsocial impact check

FAQ

Ｑ What kinds of loans can we consult with JBIC about?
supports MTEs and SMEs in expanding their business overseas,
A JBIC
through co-financing with private-sector financial institutions. In

Ｑ What are the benefits of borrowing from JBIC?
offers preferential interest rates to MTEs and SMEs. Also, JBIC’s
A JBICloans are available in various local currencies, as well as USD, EUR,

principle, the uses of funds are capital investment of overseas
subsidiaries, leases, and business mergers and acquisitions (M&As).
Eligible projects do not include
those to be implemented in Japan,
even if they are related to overseas
business (e.g., production and
R&D in Japan for the purpose ofexport business). Loans for export
and import payments are handled
separately as export finance andimport finance. Please contact
us about what we can offer
specifically for your project.

and JPY. The other benefits can be broadly divided into the following
three categories:

Ｑ Are there any rules for the

Support that leverages JBIC’s status as a policy-based financial institution◆ Advice on overseas financing (external borrowing regulations, borrowing
procedures, etc.) based on JBIC’s experience and expertise◆ Direct communication channels with local governments (handling of issues
related to permits, approvals, etc.)◆ Withholding tax on interest exempted under bilateral tax treaties◆ Mitigation of political risks related to foreign currency exchange, remittanceregulations, etc.
◆ Support for registration of foreign bonds

does not provide short-term loans of one year or less. Other thanA JBIC
that, we have no specific rules regarding the amount and term of theCategory 2 Benefits

amount and term of the loan?

loan. We screen applications and make decisions on each case, taking
the loan applicants’ preferences into account.

Ｑ What kind of documents would we need to submit
with our application?

Contract
preparation

Loan decision
Signingandexecution

JBIC
supports
variousprojects

Loan agreement (cross-border loan)/Deed of debt guarantee
Loan agreement (domestic financing)/Collateral related agreement (if necessary)

Loan decision

Contract signing

Loan disbursement

JBIC’s internal decision

Signing of loan agreement,
Press release

Loan disbursement upon signing of agreement
and submission of required documents

Difficulties in making investment decisions underremote working conditions during the pandemic
Development of new businesses startingin earnest as international travel resumes

There seems to be a common perception that JBIC’ smain targets are large corporations and key industries suchas energy. In fact, since JBIC’ s reorganization into a
joint-stock company in 2012, we have clearly positioned theprovision of support for MTEs and SMEs as one of our key
pillars. At that time, automobile suppliers were actively
expanding overseas, and we provided 133 loans to MTEs
and SMEs projects in FY2015. This accounts for about 46%
of all loans made by JBIC.
Traditionally, JBIC has provided support for projects indeveloping countries, except for certain projects. However,
due to the COVID-19 pandemic, no matter how big or small
they were, many companies started needing a wide range of
support, which is why we launched new measures, including
the provision of support for projects in developed countries.
As a result, although not quite reaching pre-pandemic
levels, we were able to provide support to MTEs and SMEs
in over 110 cases per year for the past two years.
Looking back at the 10 or so years since ourreorganization, we can see an increase in the number of
MTEs and SMEs that have taken on the challenge of doing
business overseas, for a variety of reasons. Although the
pandemic is not yet over, some countries have begun to
shift their policies to one of living with COVID-19, andbusiness activities are starting to become livelier. The

4documents required for an application include financial statements,
A The
investment plan summary, and registration confirmation documents.

Drafting of loan agreement

manufacturing industry and mobility industry, such as
electric vehicles, are particularly noteworthy in this regard.
As well as responding to the decarbonization trend, there isa growing momentum in these industries to seize new
business opportunities. During the pandemic, even thoughcompanies had the will to invest, they were finding it difficult
to make decisions with remote communications alone.
However, we expect to see an increase in overseas
transactions as travel restrictions ease.
While there are positive topics, it is also a fact that there
are issues of concern, such as the Russia-Ukraine situation,soaring energy prices, and exchange rate fluctuations. As a
Japanese policy-based financial institution, JBIC strives toprovide appropriate information, taking the SDGs andgeopolitics into account.
JBIC regularly publishes reports on the investment
climate of each of seven countries, including China andVietnam, and distributes them free of charge. We also holdonline seminars on an ongoing basis, connecting with ourrepresentative offices overseas, including China and ASEAN
member countries, to provide the latest local information.
Companies looking to expand overseas for the first time
would likely be unfamiliar with the local circumstances, andthey may have difficulty formulating their business plans. If
that is the case, they should feel free to consult with us.

Director General, Finance Office for SMEs
(at time of writing)Generally, JBIC provides loans through co-financing
with private-sector financial institutions. In other words, JBIC
finance would not be possible without the loans extended bythese private-sector financial institutions. For this reason, we
recommend to MTEs and SMEs that they build solid
relationships with the private-sector financial institutions they
deal with on a day-to-day basis for currency exchanges anddeposits.

Information about overseas markets◆ Overseas investment seminars, etc.
◆ Information through JBIC’s overseas
representative offices◆ Free investment climate reports

Please contact our office in Tokyo or Osaka for the specific documents
you will need to submit.

Ｑ Are there any limits on eligible sectors?
support scheme for MTEs and SMEs is available for a wide
A JBIC’s
range of sectors, including manufacturing and services, but loans forcertain sectors are treated in the same way as those for large
enterprises. This includes agriculture, forestry, fisheries, finance andinsurance (excluding insurance agencies and insurance services), andreal estate (limited to leasing business of residential property and land
for residential property).

JBIC has
local
supportto offer

NITTO Takaaki

Category 1 Benefits

Category 3 Benefits
Other support◆ Free advice from accounting and legal experts(Available from the preliminary consultation stage for loan projects, etc.)◆ Publicity through JBIC’s announcements, press releases, etc.

Local staffs with rich knowledge provide support
for local administrative procedures

Taking advantage of their local presence, JBIC’ soverseas representative offices take on various roles suchas project support, research, and holding policy dialogues
with the local government.
In Vietnam, when borrowing funds from overseas for along-term (over one year), an application must be filed inadvance with the State Bank of Vietnam. For various
reasons, sometimes this application process does notproceed smoothly. To solve these problems, JBIC’s local
staffs support our clients in many ways, including making
explanations to the State Bank of Vietnam directly.
Also, based on the tax treaty between Japan and
Vietnam, interest owed to JBIC is exempted fromwithholding tax. However, the familiarity of the local tax
offices with JBIC and such treaty varies among provinces,and in some cases the documentation may hold up theprocess. In such cases, our local staff provide flexible
support, carefully explaining JBIC’s loans in detail andpreparing additional documentation from the JBIC side if
needed.
Unlike large enterprises with many staffs specializing inaccounting, finance, or research, many MTEs and SMEs
conduct various operations with a limited number of
personnel, so with the increasing number of SME projects,

we are also seeing increasing number of cases which theyseek JBIC’ s overseas representative offices’ advice.
Vietnam’ s unclear legal/tax regulation and its execution has
been regarded as a major issue by the corporates. For
example, interpretation of a single regulation may differ byregion or by the person in charge. Taking these unique local
circumstances into account, JBIC’s Representative Office in
Hanoi provides support for overseas expansion of MTEs
and SMEs and promotes the development of the businessenvironment through policy dialogues with the Vietnamese
government and other measures.
On the other hand, according to JBIC’ s “FY2021
Survey Report on Overseas Business Operations by
Japanese Manufacturing Companies,” many companies saw
Vietnam’ s “future growth potential of the local market”
promising, despite the fact that the survey was conductedduring the COVID-19 pandemic. The Vietnamese
government chose to co-exist with COVID19, and thisdecision has boosted local economic activity. In the past,
many companies started business in Vietnam because they
were attracted by its low labor costs and the skillful andserious workforce. In recent years, however, in addition tothese points, Vietnam’ s importance in the regional supply
chains and its accessibility to neighboring countries havefeatured increasingly, making the country more attractive as
an overseas investment destination.
JBIC’s Representative Office in Hanoi has long been
focusing on supporting MTEs and SMEs, by presenting our
support scheme and providing advice even before thesebusinesses decide to venture into Vietnam. We can provide
our support regardless of the size of investments, so pleasecontact us to see what we can do for you.

AGUIN Toru, Chief Representative of JBIC’s Representative Office in
Hanoi (4th from right), IKENAGA Azusa, Representative (3rd from left),
and the staff of the Representative Office. Our local staff, with theirknowledge of local legal systems and business practices, aredependable partners.

5

Leveraging technologies forged in the Japanesemarket to venture overseas
Civil EngineeringandConstruction

SUGAWARA Industry Co., Ltd.
[Miyagi Prefecture]

URL
Established
CapitalPresident and CEO
Employees
Business description

http://sugawarakogyo.co.jp/
July 1980 (Founded in October 1965)
JPY20 million
SUGAWARA Wataru
48
Construction, industrial waste transportation,
quarrying, civil engineering, paving work, etc.

For Kesennuma to remain the town of choice

However, because recycled asphalt
introduced by other companies in the past had
been expensive, yet of poor quality, the local
government had a negative impression ofrecycled asphalt and was reluctant to grant
approval. SUGAWARA Industry made various
efforts to convince them, such ascommunicating the differences in construction
methods and the quality of materials comparedwith other companies. They even paved a local
industrial park with recycled asphalt free ofcharge to allow the locals to experience theactual product at first hand. Ultimately, thoseefforts paid off and SUGAWARA Industry’s
products are now even used for public works.
The origin of the business goes back to theGreat East Japan Earthquake in 2011. Thanks
to connections made when Indonesia provided
support for reconstruction efforts, Kesennuma
City now takes in a large number of technicalintern trainees from Indonesia.

No.2 recycled asphalt plant built in Majalengka City,
Indonesia

6

SUGAWARA Industry also has manytechnical intern trainees. In addition tochronic labor shortages, the constructionindustry has been kept extremely busy
with reconstruction work, so thesetrainees have been of great assistance.
However,thefutureofthepost-reconstruction market is uncertain,
and, as Indonesia’s own economy has
grown, the number of technical interntrainees coming to Japan has waned. If
nothing is done, the vitality of the region
could deteriorate. It was for the good of
the region and for the future of thecompany that Kesennuma remained the
choice of the Indonesian people.
In the belief that it was essential toprovide a place where Indonesian
technical intern trainees returning to theirhome country could demonstrate theskills they had acquired in Japan, Mr.
SUGAWARA immediately flew toIndonesia and met with the head of localorganization that sends technical interntrainees. Coincidentally, the two had amutual acquaintance, and that connection
contributed to the establishment of a joint
venture in Indonesia in 2015.

Technological development to improve
environmental performanceWith the completion of No.1 plant in thefollowing year, the recycled asphalt business
was launched. In December 2021, SUGAWARA
Industry established a new joint venture in
Majalengka City and built a new plant. The
funds for this project were procured from a
syndicated loan between JBIC and the 77 Bank,
Ltd., but the benefits were not only financial.

Paving works with recycled asphalt in Indonesia

Biotechnology

Biotech Japan Corporation[Niigata Prefecture]

URL
Established
CapitalChief Executive Officer
Employees
Business description

https://www.biotechjapan.co.jp
April 1994
JPY100 million
EGAWA Jo
45
Development of fermentation technology
utilizing some 3,000 company-owned
strains of superior bacteria

Bringing good health to the world
with foods made with plant-based lactobacilli

Japanese Pavement Engineering Shining in Indonesia‘It’s a lot like Japan was 20 years ago.’ Thatis the impression that SUGAWARA Wataru,
President of SUGAWARA Industry Co., Ltd., aJapanese company that operates a recycledasphalt business in Indonesia, gained when hevisited the country for the first time.
In Japan, recycling of used asphalt for
roadworks has become popular as a way toconserve resources and preserve theenvironment. On the other hand, there aremany unpaved roads in Indonesia, androadworks quality is poor. As existing roads
were also in need of repairing, Mr.
SUGAWARA was convinced that his company’sengineering capabilities could be put to gooduse in this country.

What is the background behind decisions of mid-tier enterprises and small and SMEs (MTEs/SMEs) to set up business overseas?
Without settling for stability, MTEs/SMEs aim to make the leap into the unknown. We interviewed MTEs/SMEs with this kind ofchallenging spirit who have expanded into overseas markets with JBIC’s support, asking them to talk about the background,purpose, and future goals of their overseas expansion.

Bringing good health to the world withfoods made with plant-based lactobacilli
Biotech Japan has been operating in thePhilippines since 2015, producing and selling
products such as low-protein rice, using thecompany’s
proprietary
fermentation
technology to process locally grown rice.
Major uncertainty about the future of theJapanese market, with its aging andshrinking population, prompted the company
to venture overseas.

Proprietary technology thatleverages plant-based lactobacilli

SUGAWARA Wataru
President and CEO

JBIC's press release on this project had agreater response than expected, attracting
inquiries from major general contractors withwhich SUGAWARA Industry had had no priordealings.
With the aim of enhancing environmental
performance even further, the new asphalt
plant plans to switch to biomass fuels for its
operation. The company has also switched to
locally produced additives to be added to therecycled asphalt.
Many employees of the company haveexperience in paving works, but partly due todifferences in the national character, there
have been some problems on the management
front, and the company is considering a gradualshift to a Japanese corporate style. Trainees
who worked in Kesennuma return to Indonesia
and teach the Japanese way, and locally hired
personnel come to Japan to learn the Japanese
way. President SUGAWARA hopes that suchexchanges will bring about the revitalization ofboth his company and the local community.

Not only is Japan’s population shrinking,but the aging of the population, which meansthat each individual is eating less, also results
in a constant decline in rice consumption. In
contrast, the average age of the Philippines’
population is young at somewhere in thetwenties, and per capita rice consumption isdouble that of Japan. In addition, friendly
sentiment toward Japan and English being an
official language make it easy to do business.
There are also great expectations for
economic development.
Unlike the animal-derived lactobacillus
contained in cheese and other dairy products,
the lactobacillus that Biotech Japan uses toprocess its rice is plant-based, grown on grains
and vegetables. Plant-based bacteria cansurvive in low-nutrient environments, making
it adaptable to the fermentation of a variety offoods. In food product development, control ofmicrobial growth is key. In the case of pickles,
salt is used in large quantities to suppress thegrowth of all microbes except
lactobacilli.
However, low-protein rice targets
people who want to treat kidneydisease and other illnesses withnutritional therapy. These people needto reduce their sodium intake as wellas protein, so using salt in large
quantities is not an option. Biotech
Japan’s proprietary technology solves
the problem of causing fermentation
while suppressing the growth of othermicrobes.

Using rice to alleviate
the burden of hemodialysis

There are already wellestablishedlactobacilli
forreducing protein content in Japaneserice, as well as fermentation methods
and cooking methods. However, inChief Executive Officer
the Philippines, medium-grain andlong-grain rice varieties are the most
They mentioned these plans to the JBIC
prevalent, which meant that Biotech Japan
representative stationed in the Philippines,
had to start their development venture bywhom they had met locally. JBIC proposed afirst searching for suitable lactobacilli.
syndicated loan with the company’s main
Moreover, locally procured rice was oftenbank, Daishi Bank (now Daishi Hokuetsu
contaminated with foreign objects such as
Bank), and a loan agreement was concluded
pebbles and glass fragments and the grains
in January 2020. The COVID-19 lockdownof the rice cracked so they had to bring inoccurring just as they were relocating fromsorting equipment to ensure the safety of thetheir leased factory to their new factory was
raw material.
an unexpected hurdle, but the new facility is
By 2018, the business was finally on track,
now up and running without issue.
and Biotech Japan began to consider leaving
Their most pressing challenge now is
the leased factory that they had been using
how to market their products. In Japan,
until then and building their own factory.
low-protein rice is marketed from a
preventive medicine perspective, as a way of
avoiding hemodialysis, but in the Philippines,
prevention awareness is low, and it is difficult
to convey the value of low-protein rice, which
is more expensive than regular rice. For thisreason, Biotech Japan has tweaked its
marketing message to convey the fact thateating low-protein rice is more economical
than the annual cost of hemodialysis.
In the future, the company also wants togrow its own rice in the Philippines. As acompany that originated in Niigata, a
The company now sells a wide range of packaged cooked rice made with
Low-carb/low-calorie food product,
fermentation technology that uses plant-based lactobacilli, supporting“GOHAN Lite”
prefecture famous for its rice production,customers’ diets. (Photograph) Rice products sold in the Philippines. From left:
Biotech Japan’s challenge to deliver healthy
Low-protein food product “ECHIGO,” regular “Insta RICE,” low-carb/low-calorie
and delicious rice to all will continue.
food product “GOHAN Lite,” disaster emergency food product “RICE to Go”

EGAWA Jo

7

Food

ASANO CO., INC.
[Kochi Prefecture]

WebsiteEstablished
CapitalCEO
Employees
Business description

Expanding sales of ginger, as a healthy food, to the worldSince its foundation in 1950, ASANO CO., INC.
has consistently engaged in the production,
processing, and sales of Japanese-grown ginger.
The business began with the company’s founder,
himself as a ginger farmer, shipping ginger to thefruits and vegetable market in collaboration withneighboring farmers, and it gradually expanded
into a processing business. The company has
contributed to the development of the industry bypaving the way in all-year-round availability with
its cold storage method.
In addition to ginger for the fruits andvegetable market, the company has now
diversified its product lineup to include ginger
in many different forms, including pickled,
grated, minced, powdered, and frozen. These
products are packaged in a wide variety offorms, including in bulk for major food
manufacturers, for commercial use, and for saleto individual consumers at volume retailers.
ASANO’s ginger is grown by local contract
farmers in Kochi Prefecture, Japan's top
producer of ginger, using technology andknow-how that they have cultivated since theirfoundation. According to conventional cultivation,
the company works on the special andenvironmentally-friendly cultivation methods withToys

the aim of delivering safer,more
reliable
gingernationwide. ASANO holds
meetings of its local contract
farmers three times a year,
where they learn about
technology
andquality
improvement from outside
instructors that the company
invites from fertilizer andagrochemicalcompanies
and related organizations.
The high-quality ginger thus produced, isbeing processed at ASANO’s two production sites,
the main factory and Shimanto factory, which areequipped with the latest in production machinery.
They also pay thorough attention to hygiene andquality management on line operations. With anuncompromising traceability system, ASANO hasestablished a production system for safe andreliable products of high quality.
The company began exporting its products to
the United States and other countries around2012. As their next step was to set up another food
manufacturer company in southeast Asia, ASANO
established “Asano SK Ginger Co., Ltd. (ASK)” in
Thailand in 2021. It now aims to expand theWebsiteEstablished
CapitalPresident and CEO
Employees
Business description

SYS inc.
[Tokyo]Aims to grow by seizing expanding demand
for trading cards
SYS inc. is a special printing company. The
company has proprietary techniques andknow-how in high-quality special printing of foil
processing such as a “quasi-embossing”
technique, in which two varnishes are applied tothe surface to express surface textures,“Lamicoat (laminating-coating)” and “cold foil,”which are used to produce a gloss finish andhologram finish on the surface.
The company owns several factories, mainlyin the Tokyo metropolitan area. In addition tolarge-lot printing, SYS accommodates manydifferent requests with flexibility. They include"pillow pouch packaging,” in which products aresealed with film that has been formed into a tube
at its factory, which has a clean room installed,
and assembly work to suit the printing process
employed.
With such technical capabilities andresponsiveness, SYS has positioned “tradingcards” as a core business. It offers one-stop shop
services from design and planning of cards topillow pouch packaging.
With excellent design and durability basedon special printing techniques as its strengths,
the company has produced many different types

8of trading cards at the request of various clients,
including individuals who enjoy using them ingroups of enthusiasts, as well as toy
manufacturers and publishers.
SYS accommodates global printing needs bymaking use of its overseas network, with afactory in Malaysia and an office in Singapore. In
addition to delivering products and services at
the request of overseas companies, SYS also
supports overseas expansion of Japanesecompanies. It imposes thorough quality
management on its Malaysian factory to thesame standard as its Japanese facilities, which
has earned the company a high degree of trustfrom major manufacturers.
In March 2022, GORIN TECHNICAL
INDUSTRY (MALAYSIA) SDN. BHD. (GTIM),
SYS’s Malaysian subsidiary, received a
syndicated loan through co-financing by JBIC,
Resona Bank, and the Shoko Chukin Bank. The
loan totaled JPY520 million. The company plans
to use these funds to build additional facilities
for its printing and processing operations for
trading cards in Malaysia.
With the expansion of their use, including incard games and as collectables, trading cards

https://shouga.jp/english/
April 1950
JPY10 million
ASANO Heijiro
242
Production and sales of ginger for the fruits
and vegetable market, production and salesof frozen and processed foods, production
and sales of company original products

Ginger, which is grown in Thailand, ASANO’s
Thai subsidiary produces and sells frozen andprocessed foods for the Thai fruits andvegetable market according to its clients’ needs.

Local Thai Staffs

business in the markedly growing Asian region. It
has also established a production facility in
Thailand, which ASANO has the intention to use
as the base for its business global expansion.
In December 2021, ASK took a syndicated loan
from JBIC and the Shikoku Bank. The borrowed
funds, worth a total of THB76 million
approximately, will be used for manufacturing andsales operations of its products such as processed
foods in Samut Prakan province, Thailand.
Ginger is known as a healthy food that
contains ingredients that warm the body andimprove the immune system and metabolism.
ASANO’s aim is to help improve the health ofpeople around the world through the expansion ofoverseas business.

https://www.sys-inc.jp/
July 2002
JPY30 million
SHIMIZU Ikuo
192
Planning of design and card games, production of tradingcards, original playing cards, and original Japanese karuta
cards, general commercial printing (brochures, leaflets,
pamphlets, etc.), special printing (etching, film printing,holograms, PP/PET, etc.), sales promotion tools (planning ofpoint of purchase advertisements, advertising and information
media, etc.), assembly work (general internal work)/logistics,
online sales

Inside SYS inc.’s Malaysian factory

have now become very popular as a form ofculture around the world. SYS aims to grow thisbusiness even further by steadily seizing
demand in a rapidly growing trading cards
market.

Medicalequipment
andhygieneproducts

Hakuzo Medical Corporation[Osaka Prefecture]

Quick response to needs of medical
and nursing care settings
Hakuzo Medical Corporation handles a wide
range of medical hygiene supplies, including
gauze, dry cotton, and bandages, as well as
pharmaceuticals, medical equipment, and hospital
infection control products. It handles more than
10,000 items, which it supplies to over 6,000
medical institutions.
The strength of this company is that the sales,development, and manufacturing divisions areunited as one in responding quickly to the needs ofcustomers. Development staff visit medical andnursing care settings personally to obtain
feedback directly from the company’s customers.
They explore issues and problems and quickly
provide products that solve them. Sales staff hold“promoter meetings,” in which they take initiatives
to put the unique perspectives and ideas of thesales division to use in product development.
Recently, they are also placing efforts into thedevelopment of products that will save the time andeffort required of healthcare and nursing care
workers and improve operational efficiency in thesesettings through a combination of medicine and IT.
As they handle products that are deeply related
to human life and health, ever since it was founded,
Hakuzo Medical has been striving to improve the

Packaginghttps://www.hakuzo.co.jp/
January 1954
JPY50 million
HITOTSUBASHI Shunji
286
Manufacture and sales of pharmaceuticals,quasi-drugs, medical equipment,
and cosmetics, importand export of medical hygiene supplies

standard of its factory managementwith the “3As: (Anshin (Reliability),Anzen (Safety), and Antei-kyokyu(Stable Supply)” as its motto. The
company also complies with Good
Manufacturing Practice (GMP),
the standard for appropriate
control of manufacturing andThai factory (WHA Chonburi From its manufacturing facility in Thailand,
quality for pharmaceuticals, andIndustrial Estate in Sriracha
Hakuzo Medical rolls out hygiene products toDistrict)
southeast Asian markets to meet growing
has ISO 13485:2016 certification,
healthcare needs.
the international standard forsyndicated loan from JBIC and Sumitomo Mitsui
medical equipment. Leveraging the expertise, itBanking Corporation. The company used thesehas cultivated over many years, the company also
funds to establish its Thai factory in WHA
conducts contract businesses on behalf ofChonburi Industrial Estate in 2021, from which itcompanies in non-medical fields, including
started rolling out first aid bandages and othermanufacturing and sterilization treatment.
hygiene products to ASEAN markets.
Hakuzo Medical started developing overseas
The trend of population aging is beginning tomarkets about ten years ago and has exported
affect not only developed countries but also
alcohol swabs and other products to central Asia,
emerging countries such as the ASEAN member
Europe, and Australia. With the aim of capturing
countries. The demand for medical and nursing
market share in southeast Asia, where medicalcare products is expected to grow even further inneeds are growing, the company established athe future. As a good partner of healthcare andlocal subsidiary, Hakuzo Medical Asia Co., Ltdnursing care workers around the world, Hakuzo(HMAC), in 2018.
Medical strives to deliver products that meet the
In March 2020, it received funds totaling
times.
USD4.24 million approximately through a

Nasa Corporation[Tokyo]Contributing toward the developmentof tea and coffee culture
Nasa is an export trading house that handles
tea and coffee packing machines and materials.
The company holds the top share in the global
market for its main product, packing machines forpyramid tea bags, which originated in Japan. In
recent years, it has also been focusing on the
manufacture and sales of packing machines,
filters, etc. targeting the drip coffee market.
Nasa was established in 1980. The company
started out as a trade desk for nine industrial
machinery manufacturers who invested in it asshareholders. Since then, it has expanded its
business by acquiring manufacturers and cafés ascustomers in more than 60 countries, centering on
Europe and North America.
The company’s long-standing businesschallenge was to establish a system that would
enable it to provide sophisticated, inherently
Japanese service to its many customers scatteredacross various locations far from Japan. As part ofthe development of such a system, in 2007, it
established a local subsidiary in Beijing, China. In
2009, it also set up and started operating a
joint-venture manufacturing facility for tagged
filters in Morocco.
As the company had little knowledge on how to

WebsiteEstablished
CapitalPresident
Employees
Business description

WebsiteEstablished
CapitalCEO
Employees
Business description

https://www.nasaco.com/e/index.html
September 1980
JPY17 million
AGATA Tsutomu
42
Sale of tea and coffee bag packing
machines and materials

manage overseas locationsin those early days, it mademistakes in terms of
personnel, finance, sales,and marketing, and otherareas. By learning fromthese mistakes and withthe support of trusted local
partners, it eventually
managed to get its
Inside Nasa’s Moroccan factory
Product display at local subsidiary in China
overseas operations firmly
on track.
JBIC and the Chiba Bank. The funds will be used
In 2014, Nasa established a sales company andfor the business of selling packing machinery anda second overseas joint-venture factory for taggedmaterials in the European and Chinese markets,
filters in Shanghai, China. More recently, thecompany has been accelerating the establishmentwith the aim of further growth in the global
market.
of a manufacturing and sales framework overseas,
Going forward, Nasa plans to propose packing
including establishing local subsidiaries in Taiwan,
machinery and materials to businesses around theShanghai, and Germany between 2016 and 2018.
world that will enable people to enjoy a new style of
In June 2021, Nasa Deutschland GmbH(NDGH) concluded a loan agreement worth a total
drinking tea and coffee, under its slogan of“Bringing Japanese food culture to the world.” Byof up to EUR1 million through a syndicated loan
tailoring the provision of services and marketing toprovided by JBIC and Resona Bank. In December
individual markets, Nasa strives to contribute2021, NASA CORPORATION (CHINA) concluded
toward a satisfying tea and coffee time for people
a loan agreement worth a total of up to RMB6.2
around the world.
million through a syndicated loan provided by9Interview
with AssociatedInstitutions

To support the passion of
locally based companies
As economic growth in domestic markets slows, more and more companies are looking for ways to extend theirbusinesses overseas. We interviewed financial institutions and public organizations whose work focuses on supporting
mid-tier enterprises (MTEs) and small and medium-sized enterprises (SMEs) with which they have close associations,asking them about their overseas support efforts and about working with JBIC.

The Amagasaki Shinkin Bank

Aim to become an “indispensable presence”
Contributing to the development of the local economy througha “side-by-side” style of support—The business environment surrounding
MTEs and SMEs has become increasingly
harsh, due to a variety of factors such as the
COVID-19 pandemic and the Russian
invasion of Ukraine.
Mr. SAKUDA Just as they were thinking about
rebuilding after the COVID-19 pandemic, many
companies still find themselves facing
extremely harsh circumstances, such as theRussian invasion of Ukraine, soaring crude oil
prices, and the weakening yen. The Kansai
region, where inbound tourism was strong
before the pandemic, has been hit particularly
hard, and the restaurant and service industries
have been in distress. However, there havebeen relatively few bankruptcies, and I sense
signs of economic recovery with gradualimprovements in the flow of people and goods.

SAKUDA Seiji,
The Amagasaki Shinkin Bank
10

On the other hand, in the manufacturingsector, companies that have business connections
with Russia are suffering the direct impact of theinvasion of Ukraine. Some companies havesuspended their operations due to difficulties in
obtaining resources such as semi-conductor
chips. Financial institutions tend to assess risk
based on past scenarios, but these days, events
that we would not have thought possible are
actually happening, so I believe it is important tokeep unforeseen risks in mind in preparation forstructural change in the world.
—Your bank has declared a “side-by-side”
style of support for your customers.
Mr. SAKUDA Shinkin banks have always been
financial institutions that are close to theircustomers. In our operations, instead of merely
focusing on their financial situation, we havealways worked alongside our customers
to consider the future outlook for theirbusiness. This “side-by-side” style of support
is a unique strength of The Amagasaki
Shinkin Bank, and we believe that now
is our time for us to come to the fore. In
fact, many of our customers who arefacing pandemic-induced difficulties havecome to ask us for help, which has madeus realize the extent of their trust in us
and how high their expectations are of us.
These kinds of interactions have given
even more strength to our relationships oftrust with our customers. It is at times ofadversity such as these that we gain a true
sense of the significance and rewarding
nature of our business as a shinkin bank,as well as a sense of mission, that we are
the one who are able to support ourcustomers. I believe that all of us here at
the bank, from our newest recruits to thedirectors of the company, need to share arecognition of that mission.
—Amidachanging
business
environment, have there been any
changes in companies’ aspirations toventure overseas?
Mr. SAKUDA In the past, many companies
ventured overseas as a way of reducing
their costs by establishing manufacturingbases in areas with cheaper labor. In
recent years, however, more and morecompanies are aiming to expand theirsales channels to countries and regions
withgrowing
populations
where
consumer confidence is strong. As the
President
restrictions on movement between Japanand overseas countries are graduallyeasing, some of our customers that alreadyoperate overseas are saying that they are noticing
a trend toward recovery. Businesses that haveparticular future potential include, I believe, thosethat can expect greater needs in overseas markets
than in Japan, such as propane, and businesses
where a model of local production for local sale ismore effective, such as food products.
—What kind of support does The Amagasaki
Shinkin Bank offer to companies that are
venturing overseas?
Mr. SAKUDA We offer various kinds of consulting
support, such as introducing office space for lease,
opening accounts at local financial institutions,providing information about labor and theinvestment environment, and offering services
includingincorporation
paperwork,incollaboration with external specialized agencies.
For example, we have an extensive track record incollaborating with the overseas representative
offices of the Shinkin Central Bank, and we also
provide security-related support at local bases
overseas in collaboration with security companies
and non-life insurance companies. Our customers
have a wide variety of other needs in areas such as
IT support and labor management. To meet all
manner of requirements, we are enhancing ourservices while increasing our own capabilities.
—In 2020, The Amagasaki Shinkin Bank
conducted its first syndicated loan with JBIC.
Mr. SAKUDA One of our corporate customers wasplanning to use an inter-company loan, in which
the parent company would take on the capital
investment for its local subsidiary in Thailand. Inthat process, one of our directors, during a visit to
the parent company, heard that the company wasconsidering the prospect of the local subsidiaryborrowing as a way of streamlining its finances.
With our connections with JBIC, we thought that
we could assist the company in that regard, so we
proposed a syndicated loan.
Some of the loan in question may not havebeen achievable through our bank alone. Given
that there are few government-affiliated financial
institutions that have specialized knowledge andinformation in areas such as overseas affairs, thisnew collaboration with JBIC enabled us to providethat support, which made us happy, too.
Going forward, we will strive to be recognizedby our clients as an “indispensable presence” andfor our relationships with them to be “anunbreakable bond” by supporting them closely,
listening carefully to their needs, and building up
a track record of support. We hope to continue topartner with JBIC in this kind of support for our
corporate customers and start-ups.

Tokyo Metropolitan Small and Medium Enterprise Support Center

Hands-on support for overseas expansion by SMEs,
from strategy design to office establishment—Could you give a brief summary of youroverseas market channel development
support operation and describe its key
features?
Ms. HOKKIRIGAWA This operation was launchedin earnest in 2006 as part of our support
program. The operation’s initial focus was on
public relations support using international
trade fairs and similar events, but we are now
working on providing hands-on assistance so
we can provide more comprehensive support.
This includes the formulation of strategies
for overseas expansion, business matchingwith prospective overseas buyers and agents,
and the enhancement and expansion ofoverseas business by establishing local offices.
We achieve these things by recruiting as“navigators” former employees of trading
companies and manufacturers who are familiar
with overseas business trends. Instead of ourinvolvement ending once business negotiations
with an overseas company have been settled,
any issues that arise after that, right up to thepoint of support for their final exit, are handled
by a single navigator. This is a key feature of ouroperation. Because we provide support for
SMEs’ issues in general, and as well as theiroverseas expansion, we also respond as far as
possible to other management-related issues
that may arise in the course of providing that
support.
—In March 2021, through an intermediaryof Tokyo SME Support Center, JBIC
concluded a loan agreement to provide
funds in local currency for the Thai
subsidiary of an SME that manufacturesand sells packaging materials. Could you
describe the background that led to theconclusion of this agreement?
Mr. KUBO I had the impression that JBIC was apublic financial institution that provides
long-term loans for large-scale overseas
projects, but when I attended a webinar session
held by the Japan External Trade Organization(JETRO) three years ago, I learned that JBIC
has also been engaging in loan projects for
SMEs in recent years. I immediately contacted
them and confirmed that JBIC had schemes thatwere easy for SMEs to access, such as its
Emergency Window for Overcoming the
COVID-19 Crisis. After that, we held a numberof workshops to which we invited JBIC staff,
which ultimately led to the successful
conclusion of the agreement for a Thai project
involving overseas business expansion that wasunder consideration. The loan is provided inlocal currency to avoid foreign exchange risk.
The loan can be used for a wide range of
purposes, not only for capital investment. The
loan has a grace period for repayment ofapproximately two years. These three points
were major deciding factors in the conclusion of
the agreement.
—What do you see as the challenges andpoints that SMEs should be careful of whenventuring overseas?

HOKKIRIGAWA Yuko,

KUBO Masahiro,

International Business Section

International Business Section

ManagerMs. HOKKIRIGAWA The shortage of humanresources tends to become a disadvantage for
SMEs when venturing overseas as well.
Because they find it difficult to assign people
exclusively for their overseas operations andthey are too busy with their operations in Japan,
they tend to let their overseas expansion fall by
the wayside. When that happens, things will notgo well.
Mr. KUBO If they are serious about expanding
overseas, it would be better for them to entrust
the project to a talented staff member who
would work as a right-hand person of thepresident.
There are more than a few SMEs that aim foroverseas expansion without proper thought
when their goods have not sold well in Japan,
with very little in the way of strategies orplanning. They have the order all wrong.
Instead, they should give priority to creatingproducts and services that will sell well in thedomestic market. If they have strengths in theirbusiness and products and they assign their No.
2 personnel to the overseas project, as long as
the top management has passion anddetermination, I am certain that they will

Global Navigatorsucceed in overseas expansion, even though it
may take some time.
—Finally, can you tell us your expectations
and requests for JBIC going forward?
Ms. HOKKIRIGAWA
Currently, our support
operation is focused on the ASEAN region, but
going forward, we want to also cover westernmarkets, where a growing number of SMEs
want to set up business. As our knowledge of
those markets is limited, we would appreciate itif there were more opportunities for JBIC toshare its knowledge with us. We hope to be able
to provide smoother support for SMEs that are
venturing overseas by our staff gaining a deeper
understanding of JBIC’s loan schemes throughworkshops and other initiatives.
Mr. KUBO In reality, JBIC is not very well known
by most SMEs. It would be good if JBIC could
place more efforts into communicating
information, so that SMEs in general canunderstand its strengths and what it has to offer
comparedwithotherpublicfinancial
institutions. We at Tokyo SME Support Centerare very happy to help JBIC communicate
information by holding workshops for SMEs,
and hope to collaborate with JBIC.
11

?

Why

SDGs

Mid-tier enterprises (MTEs) and small andmedium-sized enterprises (SMEs) can be
the real heroes in the promotion of SDGs.
Their sincere approach will lead tothe enhancement of corporate value

Adopted at the United Nations Summit in September 2015, theaspect of social rules, such as laws and regulations. For example,

Sustainable Development Goals (SDGs) are shared international

Goal 13 of the SDGs calls for urgent action to combat climate

goals for achieving a sustainable world. The word "United Nations"
may make it sound like something of immense scale, but I believe thatchange. In Europe and the United States, there has been an
acceleration in the trend of requiring companies and financial

the key is to identify precisely how things have changed in our familiar

institutions to disclose the impact of climate change on theirsurroundings in the seven years since the SDGs were declared.

financial positions. In Japan, companies listed on the Prime Market

The largest change is the changes in the values of stakeholders
surrounding companies. All stakeholders, including consumers,
business partners, financial institutions, investors, and employees,
have become interested in the SDGs, and how companies areapproaching the SDGs has become a central factor in how thesestakeholders select companies to support. Promoting the SDGs
through business activities and meeting the expectations ofstakeholders will enhance companies’ corporate value and bringabout economic benefits, such as increases in net sales andpreferential treatment in financing. Instead of seeing them as lip
service or social do-gooding, the SDGs must be recognized as
critical management issues.
Another important change is that the promotion of the goals
established as the SDGs has come to be strongly required from theof the Tokyo Stock Exchange have been required to step up theirdisclosures of climate risks since April 2022. This trend is likely to
be extended to other markets besides the Prime Market, so it isimportant to be prepared in this regard.
Another benefit of engaging in the SDGs that MTEs and SMEs
should not forget is that it will help them to secure outstanding
talent. People in the younger generation known as “Generation Z”
have become familiar with the philosophy of the SDGs in a natural
way at school and in their daily lives. They are highly sensitive tosocial themes such as climate change, biodiversity, LGBTQ+, andDiversity & Inclusion. They also tend to factor in companies’ SDGs
efforts when deciding on prospective employers. However, young
people will be turned off by any perception of “SDG- washing.” Thisis a term used when businesses over-emphasize their own
initiatives in their marketing, without any actually achieving
anything. It is important for companies to make sincere efforts
based on management-level commitment.
MTEs and SMEs have an extremely significant role to play in the
promotion of the SDGs. It has been said that MTEs and SMEs
account for about 99% of all Japanese businesses. They support
local communities and are the closest to people's daily lives.
Among the goals of the SDGs such as “No poverty,” “Good healthand well-being,” “Gender equality,” and “Sustainable cities andcommunities,” there are many things that MTEs and SMEs, not large
companies, are better positioned to solve by virtue of their smallersize, which enables them to approach people in local communities
directly. It may also be important to re-examine the value generated
by their current businesses in the context of the SDGs. It is also
important for companies to communicate actively, both internally andexternally, to ensure that each and every person who supports thecompany is convinced of the importance of the SDGs.
In October 2021, JBIC announced its “ESG Policy,” declaring its
firm commitment to sustainability initiatives, such as fostering global
sustainable development and resolving global challenges. I work in
the area of sustainability promotion, and I personally hope tocontribute to building a society in which children in the future canlive in comfort, by acting with a sense of responsibility toward future
generations. Going forward, I will strive to contribute to JBIC’s
SDGs promotion initiatives with a sense of ownership and todeepen my insights into various issues in society.

HOHZOH Kaho

Sustainability Management Department

JBIC Today August 2022
Published by】Press and External Affairs Division, Corporate Planning Department,
Corporate Planning Group, Japan Bank for International Cooperation
4-1, Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan
Cover illust : Yumi Inaba*No part of this magazine may be reproduced without the written permission of JBIC.

Tel. +81-3-5218-3100 URL: https://www.jbic.go.jp/en/
Facebook https://www.facebook.com/JBIC.Japan/