- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
March 25, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD180 million (JBIC portion) with Nissan Motor Acceptance Corporation (NMAC), a U.S. subsidiary of Nissan Motor Co., Ltd. The loan is cofinanced with private financial institutions, with the overall financing amount adding up to about the equivalent of USD300 million.
This loan is intended to partially finance, through NMAC, the funds required by NR Finance Mexico S.A. de C.V. in the Republic of Mexico, in which NMAC has equity stakes, for conducting sales financing business of Japanese automobiles in Mexico.
The automobile market in Mexico has been expanding rapidly in line with its solid economic growth, with the domestic sales registering about one million vehicles in 2012 (an increase of 10% over the previous year). For Japanese automakers having a substantial presence in the country, Mexico has been increasingly important not only as a production base for exports to the countries in the Americas, but as a sales market as well.*1 Its auto market has a high rate of using sales financing for purchase. Thus auto sales financing is an indispensable tool for the business strategy of individual automakers to promote sales and increase market shares in this country. This loan will provide financial support for overseas business deployment of Japanese automakers through funding auto sales financing business, thereby serving to maintain and improve the international competitiveness of the Japanese automobile industry.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
- *1 In the FY2013 Survey Report on Overseas Business Operations by Japanese Manufacturing Companies (the 25th annual survey) conducted by JBIC, Mexico ranked 4th in the automobile industry among the promising countries for business development over the medium term. See Press Release on November 29, 2013.