DBJ Support to Mitsubishi Heavy Industries Aero Engines: Risk Money via Fund to Enhance Competitiveness, Two-Step Loan in Accordance with the Act on Strengthening Industrial Competitiveness

Mitsubishi Heavy Industries Aero Engines, Ltd. (headquarters: Komaki, Aichi Prefecture; "MHIAEL"), was established on October 1, 2014, owing to the spin-off of the private-sector aircraft engine business from Mitsubishi Heavy Industries, Ltd. (headquarters: Minato-ku, Tokyo; "MHI"). The company was launched for the purpose of taking over this business. IHI Corporation (headquarters: Koto-ku, Tokyo) acquired a stake in the capital of MHIAEL and also plans to jointly develop a long-term production collaboration system. MIHIAEL anticipates an the increase in production volume of low-pressure turbine blades and believes that. Teaming up with IHI, a global leader in production capacity in this sector, and tapping the advantages of business partners clustered under the auspices of MHI will constitute a highly integrated production system for engine parts that will strengthen its competitiveness and presence in the global market.

In this project, DBJ supplied risk money via a fund to enhance competitiveness and extended a two-step loan in accordance with the Act on Strengthening Industrial Competitiveness (operations to promote business structuring). This financing takes into account the Ministry of Economy, Trade and Industry's September 25, 2014, certification of MHIAEL's Specified Corporate Restructuring Plan. The decision criteria included DBJ's evaluation of the significance of the collaboration between MHIAEL and IHI, as well as its potential for improving industry competitiveness, leveraging the knowhow DBJ has amassed over many years of handling business restructurings and through its continued support to the aircraft industry in Japan.