Orix Corp’s recently announced business tie-up with Piraeus Bank on shipping investment comes as Japan’s finance houses are increasingly looking for new business opportunities in the West.
The Japanese banks appear to have spotted an opportunity to grow in Europe after some major European banks withdrew from the market.
The idea behind Orix’s investment is that it will add its financial firepower to Piraeus Bank’s shipping client list to help grow its $2.1bn loan portfolio.
Orix is regarded as a financially robust specialist leasing company, with a strong marine portfolio.
It signalled its ambition to grow in the European ship-finance market in 2017, when it paid out $289m to buy a share of Royal Bank of Scotland's shipping loan book, which was heavy with Greek business.
Orix does not break down figures for its ship-finance deals. The sector is packaged into its overseas business division, which includes asset management, aircraft and private equity.
Overseas business
But that overseas business division has substantial financial clout, accounting for 31% of the ¥401.4bn ($3.6bn) that Orix earned in profits in 2019.
In a separate development, just before Marubeni announced its tie-up with Klaveness in the Maruklav pool, the Japanese trading house said it was also forging an alliance with European private equity tanker investment company Dee4 Capital Partners, in what was described as a “strategic partnership”.
That alliance involves Marubeni subsidiary Garnet Marine Capital. Marubeni was among 20 investors in Dee4, which raised an initial $72m for acquisitions.
Marubeni is not only involved in trading commodities and ships but also in arranging finance for maritime investment deals.
In addition, compatriot trading house Mitsui & Co earlier tied up with trading house Cargill to help it invest in a series of capesize bulkers in China as an asset play.
Mitsui & Co has also developed its close relationship with Cargill, along with Maersk Tankers, in a new initiative to promote low-carbon shipping.
