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The Export-Import Bank of Japan signed a loan agreement with Nokia
September 29, 1995
The Export-Import Bank of Japan and The Sakura Bank Limited, one of Japan's largest commercial banks, on Friday, the 29th of October signed a loan agreement with Nokia of Finland for an aggregate amount of USD 150 million. The loan is to part cover the manufacturing, and research and development costs associated with the export of digital cellular mobile phones from Finland to Japan. Of the total finance, 70% was made available by The Export-Import Bank of Japan and the remaining 30% by The Sakura Bank Limited who also acted as adviser to Nokia.
The loan is the first transaction with a Finnich company under the Export-Import Bank's import promotion loan programme and the first co-financed by a Japanese City Bank for a European company. Japan's mobile phone industry previously used the analog cellular system, but has more recently adopted the digital system to meet rapidly increasing demand for mobile phone services.
Nokia established a joint venture with the Mitsui & Co Ltd in 1993 for the purpose of exporting and selling cellular mobile phones into the Japanese market. Through its joint venture in Japan Nokia is well positioned on the explosively growing mobile phone market. The company has in a short period of time achieved a market share of 15% in the Japanese digital phone segment. By ongoing investment in R&D and manufacturing Nokia is aiming to further improve its position in the rapidly growing market.
The signing ceremony took place at The Export-Import Bank's head office in Tokyo Friday 29. September 1995.
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