The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to USD900 million (JBIC portion) with NR Finance Mexico, S.A. de C.V. (NRFM), a Mexican subsidiary of Nissan Motor Co., Ltd. (Nissan). The loan is co-financed with private financial institutions, including Mexican bank Banco Mercantil del Norte, S.A., bringing the total co-financing amount to USD1,640 million.
This loan is intended to provide the funds for NRFM to conduct sales finance business for Nissan-branded automobiles in Mexico.
Mexico's domestic automobile sales in 2022 were approximately 1.09 million vehicles, making it the 12th largest car market in the world. For Japanese automakers with a substantial presence in Mexico, the country is important not only as a production base for exports to countries in the Americas, but also as a domestic sales market. Its automobile market has a high usage rate of sales financing for purchases. Therefore, automobile sales finance is an indispensable tool for the business strategy of individual automakers to promote sales and increase market shares in the country.
This loan will support Nissan’s overseas business deployment through providing necessary funds for its automobile sales finance business, thereby contributing toward strengthening the resilience of supply chains as well as maintaining and improving the international competitiveness of the Japanese automobile industry. In addition, Nissan aims to popularize electric vehicles in Mexico based on its sustainability strategy and the loan will contribute to the efforts to this end as well.
As Japan's policy-based financial institution, JBIC will continue to provide financial support to help with efforts to enhance the supply chain resilience of Japanese industries and assist Japanese companies in the overseas expansion of their businesses.
