-- Japan Bank for International Cooperation (JBIC) is lending $2.38 billion to help fund trading house Mitsubishi Corp.'s (TYO:8058) purchase of American gas developer Aethon Energy, Nikkei Asia reported on Friday.
The state-backed institution entered into a syndicated loan agreement with private lenders, including Mitsubishi UFJ Financial's (TYO:8306) MUFG Bank, the news agency said.
This acquisition, which costs $7.53 billion, marks Mitsubishi's largest deal ever, follows Nippon Steel's (TYO:5401) purchase of U.S. Steel as another major public-private financing effort, the publication said.
By boosting Japanese firms' competitiveness in U.S. gas operations, JBIC aims to strengthen Japan's energy security, particularly as Aethon's annual output could cover roughly a quarter of Japan's LNG demand, the report added.
JBIC has not replied to MTNewswire's queries at press time.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)