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Japan life insurers to offer yen loans to Canada

TOKYO: Japan's four leading life insurance firms will provide 25 billion yen (US$274 million) in syndicated yen loans to Canada's Ontario State, a leading financial daily reported on Saturday.

The Nihon Keizai Shimbun said the 10-year loans would be the first package of loans after the Finance Ministry announced steps on August 2 to ease domestic barriers to overseas investments and loans.

The four life insurers are Nippon Life Insurance Co, Yasuda Mutual Life Insurance Co, Mitsui Mutual Life Insurance Co and Chiyoda Mutual Life Insurance Co, the financial daily said.

The loan's interest rate was expected to be lower than 3.4 percent, it said.

Other insurance companies were also thinking of joining the consortium, the daily said.

It said an expansion in Japanese investments and loans overseas was likely to help trim the yen 's strength since most non-Japanese borrowers will convert yen into foreign currencies.-Reuter