Loan for Automobile Sales Finance Business in Russia
Supporting Overseas Business Deployment of Japanese companies through Ruble-denominated loan
- Region: Europe
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on March 11 a loan agreement denominated in Russian ruble with AO Toyota Bank (TBR), a Russian subsidiary of Toyota Financial Services Corporation, wholly owned by Toyota Motor Corporation (Toyota). This loan is co-financed with a private financial institution to provide a portion of the financing for TBR's automobile sales finance business for Toyota brand automobiles in Russia.
New automobile sales in Russia have shown positive growth since 2017, due to the economic recovery. Russia's car ownership ratio is lower than that of other developed countries and its automobile sales are expected to continue to increase. Under such circumstances, the Russian automobile market is an important market for Toyota and other global auto manufacturers, as evidenced by their expansion of local car production.
This local currency denominated loan is intended to support Toyota's automobile sales finance business which is an important tool for maintaining and expanding its market share under its business strategy in Russia. Through this loan, JBIC contributes to maintaining and strengthening the Japanese automobile industry's international competitiveness.
As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in expanding their overseas businesses by drawing on its various financial instruments for structuring projects, including local currency denominated loans, and by enhancing its risk taking and managing measures.