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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on July 27 a loan agreement with Banco Honda S.A. (BHB), a Brazilian subsidiary of Honda Motor Co., Ltd. (Honda). The loan is cofinanced with Banco de Tokyo-Mitsubishi UFJ Brasil S/A..
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This loan is intended to finance part of the necessary funds for BHB to conduct the sales financing business of Honda-branded motorcycles and cars in Brazil.
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Honda entered the Brazil market with its motorcycles in the 1970s, and now holds about 80% of the country’s motorcycle market. Its share of cars is also gradually expanding in the world’s fourth largest market for car sales. In order to maintain and further expand its share in this market, however, the sales financing has become a strategically important tool. Through the support of such overseas business deployment of Honda, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries. This loan will also support the enhancement of BHB’s strategy to diversify its funding sources.
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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 performing its risk-assuming function.
