Toshiba bidder JIP set to win banks' backing for $10.6 bln loan -Bloomberg News

The logo of Toshiba Corp. is seen at the company's facility in Kawasaki, Japan
The logo of Toshiba Corp. is seen at the company's facility in Kawasaki, Japan February 13, 2017. REUTERS/Issei Kato/File Photo

Feb 7 (Reuters) - Top Japanese banks have agreed to issue letters this week committing to a 1.4 trillion yen ($10.60 billion) loan to back a Japan Industrial Partners-led consortium's takeover offer for Toshiba (6502.T), Bloomberg News reported on Tuesday.

Sumitomo Mitsui Financial Group Inc (8316.T) will commit to lending 515 billion yen, Mizuho Financial Group Inc (8411.T) 460 billion yen and Sumitomo Mitsui Trust Holdings Inc (8309.T) 220 billion yen, Bloomberg said, citing unidentified sources.

Mitsubishi UFJ Financial Group (8306.T) and Aozora Bank Ltd (8304.T) are also participating, it said.

Mizuho, Mitsubishi UFJ, Aozora and Sumitomo Mitsui Trust declined to comment when contacted by Reuters. Sumitomo Mitsui Financial Group could not be reached immediately for comment.

The buyout led by private equity firm JIP would also include 1 trillion yen in equity to be provided by a number of Japanese companies including financial services group Orix Corp (8591.T), chipmaker Rohm Co Ltd (6963.T) and Japan Post Bank (7182.T), sources have said.

Toshiba named the JIP-led group as its preferred bidder in October. The private equity firm was then asked by Toshiba to provide commitment letters from banks by Nov. 7, something it was unable to secure by that date.

($1 = 131.7400 yen)

Reporting by Shivani Tanna in Bengaluru, Satoshi Sugiyama and Makiko Yamazaki in Tokyo; Editing by Muralikumar Anantharaman and Mark Potter

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