Mitsubishi UFG To Purchase Royal Bank of Scotland Project Finance Loans

Mitsubishi UFJ Financial Group Inc. has negotiated an agreement to purchase Royal Bank of Scotland Group PLC’s (RBS) project finance loan portfolios for an undisclosed amount. This is a step that will enable Japan’s largest bank to expand its lending operations in the Middle East and other new markets.

The major loan assets involved are essentially loans for infrastructure projects in Africa, Europe and regions where the Tokyo-lender doesn’t have a strong presence in project finance. Mitsubishi hopes to enter these markets. The RBS portfolios are worth about GBP 3.8 billion

Katsunori Nagayasu , MUFG President said that “We want to use (the purchase of RBS’s project finance assets) as an avenue for pursuing further overseas growth.”

Over the past few years MUFG has participated in international transactions, including a $9 billion purchase of a 21% stake in Morgan Stanley two years ago.

MUFG’s purchase of the project finance ventures also demonstrates that Japanese banks are going after overseas growth to deal with limited potential in Japan.