Mitsubishi UFJ offers finance to hospital chain operator in Indonesia

19, Aug. 2020

Photo by Dmitriy Suponnikov on Unsplash
Photo by Dmitriy Suponnikov on Unsplash

JAKARTA, NNA - Mitsubishi UFJ Financial Group Inc. has sealed a Shariah-compliant contract to provide funding to a major hospital chain operator in Indonesia to help it upgrade medical equipment.

PT. Bank Danamon Indonesia, a local lender under the Japanese group, will provide PT. Siloam International Hospitals with 170 billion rupiah ($11.5 million) in financing later this month to chiefly buy equipment to address COVID-19, Yuki Hayashi, senior consultant for enterprise banking at the Indonesian bank, told NNA on Friday.

It is the first case in which a Japanese financial institution has been involved in corporate financing practices allowed under Islamic law in Indonesia, Hayashi said. Bank Danamon became a subsidiary of MUFG Bank, the core lender of the Tokyo-based group, in April 2019.

Bank Danamon signed the contract in late July, Hayashi said, adding that the Mitsubishi UFJ Financial Group could offer a new financing option for needs from Japanese companies operating in Indonesia. (NNA/Kyodo)