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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed today a loan agreement in Thai baht with Toyota Leasing (Thailand) Co., Ltd. (TLT), a Thai subsidiary invested in by Toyota Financial Services Corporation (TFS) and other entities. The loan is cofinanced with private financial institutions.
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This loan is intended to finance part of the necessary funds for TLT to conduct the sales financing business of Toyota-branded cars in Thailand.
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The automotive market in Thailand had been experiencing a declining trend in recent years with the country’s economic slowdown, which was partly due to the downturn following the end of the Thai government’s tax-rebate program for first-time car buyers, as well as the drought. However, signs of recovery have been seen from improvements in weather conditions and consumer spending, and thus a steady recovery, as well as growth, is expected to occur from 2017 onwards. The Thai market continues to be crucial for Toyota Motor Corporation and other Japanese car manufacturers which maintain a strong presence in Thailand. The car sales financing business has become an important strategic tool for each manufacturer to increase their sales in such a market where the sales financing is often used upon purchase.
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The loan supports the overseas business deployment of such a Japanese car manufacturer through financing in the local currency, and by providing support to expanding the car sales financing business outside of Japan, it contributes to maintaining and strengthening the international competitiveness of Japanese industries.
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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, including loans to meet the need for funds in local currencies, as well as schemes for structuring projects, and performing its risk-assuming function.
