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JBIC, SMBC to help boost financing in Asia's power plants

Overseas infrastructure projects to come within easy reach of Japan's regional banks

TOKYO -- The Japan Bank of International Cooperation and Sumitomo Mitsui Banking Corp. will make it easier for smaller domestic lenders to finance power infrastructure projects in Asia, as Japan looks to boost infrastructure exports and hopes to make efficient use of regional funds.

The regional banks will be able to take part in the financing through a trust account of JBIC's loans established by SMBC, part of Sumitomo Mitsui Financial Group. Having JBIC as the direct lender to infrastructure businesses reduces risks for smaller regional banks, as JBIC is responsible for capital recovery, and loan periods are shorter. Typically such projects span more than 10 years.

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