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The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed today a loan agreement in Russian ruble with AO Toyota Bank (TBR), a Russian subsidiary wholly-owned by Toyota Financial Services Corporation. The loan is cofinanced with private financial institutions and is intended to finance part of the necessary funds for TBR to conduct the sales financing business of Toyota and Lexus-branded cars in Russia. This is the first-ever Russian ruble-denominated loan to be provided by JBIC.
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The Russian automobile market has recently been experiencing a decline in the number of sales due to the falling oil prices and depreciation of Russian ruble. However, taking into account the car ownership ratio, the market is expected to have more capacity for expansion compared to those in developed countries, with anticipated growth in car sales along with increasing demand following the country’s economic recovery. With such prospect, the Russian market has become important for Toyota Motor Corporation (Toyota) and other major car manufacturers, which are expanding their local productions in the country.
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Through financing in the local currency, this loan supports the sales financing business, which is a strategically important tool for Toyota to maintain and expand its market share in Russia. It thereby 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, and schemes for structuring projects, and performing its risk-assuming function.
