Extended Equity Subordinated Loan to Miki Tokushu Paper Mfg. via Iyo Growth Support Fund (Special Investment Operations)

The Iyo Growth Support Fund, an investment-focused limited partnership which is a joint investment of DBJ and the Iyo Bank, Ltd., implemented an equity subordinate loan (mezzanine financing) in conjunction with a syndicated loan arranged by Iyo Bank for Miki Tokushu Paper Mfg. Co., Ltd. (headquarters: Shikokuchuo, Ehime Prefecture).

The purpose of the Iyo Growth Support Fund, set up in January 2016, is to support growth of companies that contribute to the revitalization of local communities in Ehime Prefecture and the surrounding areas.

Miki Tokushu Paper Mfg. was established in 1947 in Shikokuchuo, which is known as one of Japan's leading paper manufacturing zones. The company engages in the manufacturing and sale of specialty papers, including tape base paper, polyester base paper and food filters, and wetted nonwovens. After becoming established as a company conducting the mechanical manufacturing of traditional Japanese paper, Miki Tokushu Paper Mfg. in the 1950s became the world's first company to successfully develop synthetic fiber paper. In Japan, the company boasts top class development and technological capabilities in the field of specialty paper.

In this project, DBJ, in collaboration with Iyo Bank, provides financial support to Miki Tokushu Paper Mfg. when the company introduces cutting-edge manufacturing equipment for unwovens for the purpose of boosting production capacity and production efficiency of water treatment membrane support, for which demand is expected to increase going forward. Moreover, the use of capital subordinated loans will also contribute to the fortification of the financial infrastructure of the company.

By supplying risk money through the Iyo Growth Support Fund as a part of Special Investment Operations, DBJ aims to support the reinforcement of business infrastructure and promote the growth of companies that will contribute to the revitalization of Ehime Prefecture and its surrounding areas.