Sumitomo Mitsui Trust to expand overseas property non-recourse loans
TOKYO, July 29
TOKYO, July 29 (Reuters) - Sumitomo Mitsui Trust Bank plans to increase its outstanding overseas property non-recourse loans to 300 billion yen ($2.95 billion) by March 2017, from 50 billion yen now, a senior executive at Japan's fifth-largest bank by assets said on Tuesday.
"We are expanding overseas non-recourse loans as they have bigger returns than those in Japan," Akira Kamiyo, managing executive officer at the core unit of Sumitomo Mitsui Trust Holdings, told Reuters in an interview.
He said his bank started providing non-recourse loans for office building projects in Singapore and London in early 2013.
Non-recourse loans are extended to properties and projects, which are pledged as collateral, and borrowers are not held liable in the case of defaults. ($1 = 101.8600 Japanese Yen) (Reporting by Taiga Uranaka and Taro Fuse; Editing by Chris Gallagher)