3 Japan Banks Extend Y40 Billion Syndicated Loan To McDonald's-Nikkei

TOKYO (Nikkei)--Japan's three top banking groups are lead-managing a Y40 billion syndicated loan to U.S. burger chain McDonald's Corp. (MCD), The Nikkei reported in its Friday morning edition.

Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp. and Bank of Tokyo-Mitsubishi UFJ have organized the yen-denominated loan, with regional lenders among the nine other participants. The 62-month loan was initiated at the end of last month. Interest rates and other terms haven't been disclosed.

Despite slumping consumer spending in the U.S., McDonald's is seen on track for higher sales and profit. The company is tapping the loan for business operations, but may not necessarily use the funds in Japan.

U.S. and European financial institutions stung by the financial crisis have become more cautious about extending loans. In the first half of last year, Japanese banks oversaw large syndicated loans to such major foreign companies as IBM Corp. and Sweden's AB Volvo.