People’s Republic of Bangladesh／Loan Insurance for Mitsui’s Guarantee Related to a Convertible Loan to ACI Logistics

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to provide insurance for the guarantee obligations of Mitsui & Co., Ltd. (Mitsui) in connection with a loan to be extended to ACI Logistics Limited (ACI Logistics), a corporation of the People’s Republic of Bangladesh (Bangladesh).

ACI Logistics is a core company of the ACI Group, one of the largest conglomerates in Bangladesh. The company operates “Shwapno,” a supermarket and convenience store chain with more than 800 stores nationwide, being recognized as one of the leading players in Bangladesh’s retail sector.

Under this transaction, Mitsui & Co.(Asia Pacific) Pte. Ltd., a Singapore-based subsidiary of Mitsui, will extend a convertible loan to ACI Logistics, backed by a guarantee from Mitsui. The loan proceeds are to be used for purposes such as funding new store openings by ACI Logistics. By supporting the financing required for the company’s growth, this transaction is intended to promote collaboration between Mitsui and ACI Logistics and contribute to strengthening their partnership.

Furthermore, Mitsui, through its partnership with ACI Logistics, plans to introduce into the Bangladeshi market the know-how, advanced systems, and business models it has developed through its consumer-related businesses in Japan. This transaction is therefore consistent with the LEAD Initiative¹, which NEXI actively promotes. In addition, as part of the business alliance with ACI Logistics, Mitsui is also considering the introduction of Japanese products at the convenience store outlets operated by ACI Logistics. As such, this transaction is also expected to create future opportunities for Japanese companies to expand exports of products and services to Bangladesh, and accordingly incorporates elements of NEXI’s SEED Scheme² that was launched in 2023.

NEXI, as a governmental financial institution of Japan, will continue to actively support Japanese companies, which contribute to the resolution of global challenges, to expand their overseas business, in collaboration with private financial institutions and Japanese companies.

Contact:
Infrastructure Group
Loan Insurance Department
Tel: +81-(0)3-3512-7674

¹ Press Release December 10, 2020（Japanese version only）
https://www.nexi.go.jp/topics/newsrelease/2020120901.html

² Press Release May 12, 2023（Japanese version only）
https://www.nexi.go.jp/topics/newsrelease/2023042704.html