UPDATE 1-Prudential gets OK for lending in Japan -source

Published: 13 Sep 2009 22:10:52 PST

* Wins licence for real estate-backed lending in Japan

* Plans to offer non-recourse loans to private funds (Adds details)

TOKYO, Sept 14 - Prudential Financial Inc has won a licence for commercial real estate finance business in Japan, where it sees growing demand for debt refinancing and to finance property transactions, a source said on Monday.

Prudential Mortgage Capital Co, a commercial real estate finance unit of Prudential, won the licence on Aug. 28 and has started marketing the nonrecourse loan service, said the source, who has direct knowledge of the matter.

Nonrecourse loans are secured by collateral, usually property, and lenders can only collect the collateral by which the loan is secured.

Prudential aims to attract long-term investors with its non-recourse loans of a minimum 5 year-term, said the source, who declined to be identified.