Mizuho readies fund for ASEAN's smaller businesses

Japanese banking giant to lead $252m investment in fast-growing region

Mizuho Financial Group will establish a roughly 28 billion yen ($252 million) fund as early as summer to invest in small and midsize companies operating within the Association of Southeast Asian Nations.

The fund will target businesses in countries such as Vietnam, Indonesia and Malaysia, where rising populations are helping to spur economic growth. About 1 billion yen would be invested in each company. Mizuho also envisions the fund being used to support joint ventures between Japanese and local businesses.

The Japanese megabank's fund will provide other kinds of support as well, such as sending staff to the businesses.

Mizuho likely will invest over 10 billion yen while companies such as Dai-ichi Life Insurance contribute several billion yen each. Japanese regional banks and European institutional investors also are considering an investment in the fund.

Source: Nikkei