Bank Interview Reveals Plans for Enhanced Support to New Businesses by Resona Bank

Resona Bank, a leading Japanese financial institution, has announced its plans to expand financial assistance to startups, aiming to provide a total of 100 billion yen in venture debt loans by March 2029.

The bank's president, Shoichi Iwanaga, emphasised the importance of startups for the growth of the Japanese economy. He stated, "The Japanese economy can't grow without startups."

Venture debt loans, a form of lending where banks receive equity purchase warrants from customers, are a key part of Resona Bank's startup assistance strategy. These loans prevent the dilution of banks' outstanding shares, providing a more secure investment for both parties.

As of the end of July, Resona Bank had already provided some 5.7 billion yen in venture debt loans. This cumulative amount of startup assistance includes these loans and other forms of financial aid.

The identity of the person who aims for Resona Bank to reach this 100 billion yen target by 2029 is not publicly known. However, the bank's commitment to supporting the growth of startups is clear.

Equity purchase warrants, a common feature of venture debt loans, are a crucial tool in this strategy. They prevent the dilution of banks' outstanding shares, ensuring that the bank maintains its equity stake in the startups it supports.

Resona Bank's expansion of financial assistance to startups is a significant step towards fostering a thriving startup ecosystem in Japan. By providing venture debt loans and other forms of financial aid, the bank is helping to support the growth of innovative businesses that will drive the future of the Japanese economy.