Investment instead of financing Support for companies such as new corona drug development companies Major finance G May 30 10:49

In order to support companies that develop therapeutic agents related to the new coronavirus and companies that promote new work styles such as telework, major financial groups have successively established funds that invest not funds but funds that do not need to be repaid doing.

Mizuho will double the size of the investment fund that supports companies engaged in technological development of advanced medical care to 10 billion yen, supporting the development of new coronavirus therapeutic agents and vaccines.

Mitsubishi UFJ will invest 10 billion yen in a company that researches and develops therapeutic drugs, while Sumitomo Mitsui will invest 10 billion in a company that develops biotechnology that will lead to infection prevention, as well as companies that promote new work styles such as telework A yen-sized fund will be set up soon.

Mizuho intends to support companies that decide that their business has a future even if they are severely affected by the new coronavirus, by issuing special shares instead of financing.

For each group, it will be profitable if the investee company succeeds in developing the drug or if the efficiency through telework improves the business performance.

Financial institutions are increasing their lending to companies affected by the spread of infection to support their cash flow, but it seems that there is a gradual expansion of support by investment that does not require repayment.