Loan for Automobile Sales Finance Business in South Africa
Supporting Overseas Business Deployment of Japanese Automobile Industry with Local Currency Loan
- Region: Africa
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement in South African rand (ZAR) with Toyota Financial Services (South Africa) Limited (TFSSA), a South African group company of Toyota Financial Services Corporation (TFS). The loan is co-financed with a private financial institution.
This loan is intended to finance part of the funds necessary for TFSSA to conduct sales finance business mainly for Toyota brand automobiles in South Africa, following a similar loan extended in September 2020*1
The automotive market in South Africa is expected to expand in the long term due to population increase and economic growth, and it continues to be crucial for Toyota Motor Corporation and other Japanese automakers that maintain a strong presence in the country. As automobile sales finance is often used when purchasing a vehicle in South Africa, the sales finance business has become an important strategy for manufacturers to increase their sales. This local currency denominated loan supports the overseas business deployment of one such Japanese automaker, thereby contributing to maintaining and strengthening 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, including loans to meet the need for funds in local currencies, as well as schemes for structuring projects and performing its risk-assuming function.