TOKYO — Mitsubishi UFJ Lease & Finance and Hitachi Capital will jointly set up a venture company as early as next spring that will finance overseas infrastructure projects taken on by Japanese companies.
Named the Japan Infrastructure Initiative, the new company aims to provide a total of around 100 billion yen ($878 million) in investments and loans to support private-sector infrastructure exports within a few years of establishment. Projects will include power plants and railways in Asia, Europe and the U.S.
Bank of Tokyo-Mitsubishi UFJ will also be involved from the start. The group plans to expand operations by bringing other financial institutions on board in the future.
Details of the financing plans will be hammered out as soon as possible.
According to the group, it will be the first effort in the country by a company to extend financial assistance to Japanese entities looking to export infrastructure projects.
The company will be capitalized at 10 billion yen.
Mitsubishi UFJ Lease & Finance and Hitachi Capital will each own a stake of 47.55%, with Bank of Tokyo-Mitsubishi UFJ having 4.9%.
The company’s president will be an individual who has worked for Bank of Tokyo-Mitsubishi UFJ.