Kasikornbank, a commercial Thai bank, has signed an untied loan agreement of up to ¥26bn (US$228mn) with the Japan Bank of International Cooperation (JBIC).

The loan will be cofinanced with eight private Japanese banks; SMBC, acting as the agent bank, Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank, Bank of Kyoto, Hokuriku Bank, Higashi-Nippon Bank, Sumitomo Trust and Banking and Nomura Trust and Banking. JBIC is providing guarantee cover for this commercial portion of the loan.

The facility aims to develop small and medium enterprises in Thailand, with Kasikornbank acting as an intermediary bank, on-lending funds to this sector.