(Bloomberg) -- Toshiba Corp. shares rose after top Japanese banks were said to issue commitment letters for a ¥1.4 trillion ($10.7 billion) loan that backs a Japan Industrial Partners Inc.-led consortium’s takeover offer for the conglomerate.

Shares climbed as much as 3.8% in early trading in Tokyo Wednesday.

Lenders including Sumitomo Mitsui Financial Group Inc. have agreed to issue the letters this week, people familiar with the matter said. The banks are still demanding senior positions in Toshiba’s management for their representatives should a takeover happen, the people said, asking not to be identified as the information is private.

Sumitomo Mitsui will commit to lending about ¥515 billion, while Mizuho Financial Group Inc. will offer ¥460 billion in borrowing, the people said. Sumitomo Mitsui Trust Holdings Inc., Mitsubishi UFJ Financial Group Inc. and Aozora Bank Ltd. are also participating in the loan, they added. Representatives for the banks and JIP declined to comment. 

Securing financing support from banks is a crucial step in the JIP-led consortium’s proposed takeover of Toshiba, one of Japan’s most iconic companies with businesses ranging from nuclear reactors to power grids and refrigerators.

The lenders were initially looking to sign off on the syndicated loan by the end of December. Those negotiations were previously stalled because of issues including covenants and collateral, Bloomberg News has reported. The discussions picked up again in the new year though they extended the deadline last week, people familiar with the matter have said.

JIP has also been in talks for about ¥1 trillion of financing from 20 potential co-investors including chip maker Rohm Co. and financial services firm Orix Corp., Bloomberg News has reported.

--With assistance from Tom Redmond.

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