JBIC open to offer financing help to Mitsubishi Heavy’s Alstom bid

Nathan Andrada – Fourth Estate Cooperative Contributor

Tokyo, Japan (4E) – The Japan Bank for International Cooperation (JBIC) said it is willing to offer financial support to Mitsubishi Heavy Industries Ltd.’s joint bid with Siemens SA for French group Alstom SA.

JBIC’s assistance could help in Mitsubishi Heavy’s financing burden, as the Tokyo-based company seeks to control parts of Alstom’s energy business for 3.1bn euros ($4.2bn). Mitsubishi Heavy also plans to buy a 10 percent stake in Alstom from Bouygues SA, valued around 900mn euros.

JBIC is ready to support Mitsubishi Heavy if they receive a request for funding assistance from the company, according to Tadashi Maeda, who is the senior managing director of JBIC, in an interview June 17.

Mr. Maeda also said that Mitsubishi Heavy may raise the money through subordinated loans and preferred stock to avoid a decline in credit ratings and a rise in interest-bearing debt.

Mitsubishi Heavy seeks to own parts of Alstom’s steam and nuclear turbine, hydro-electricity and power grid divisions, while its partner Siemens is bidding for the French firm’s gas-turbine business for 3.9bn euros, according to a joint statement released June 17.

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