Toshiba Corp will receive funding to counter yen appreciation from the Japan Bank for International Corporation's fund.
Announced by the Ministry of Finance in its Aug 24, 2011 emergency package against yen appreciation, the fund supports Japanese companies in carrying out overseas M&As. Toshiba has negotiated U.S. dollar-denominated loans totaling approximately $1 billion, some $600 million from the government fund and $400 million from Japanese private banks.
Toshiba reinforced its Smart Community business with the July 2011 acquisition of Landis+Gyr, a global leader in energy management solutions for utilities, in a deal financed by a short-term bridge loan raised from private banks. Toshiba said that funding from the government's fund will allow it to extend the loan period and to reinforce its financial base while minimizing the impact of the cost of the acquisition.© Japan Today