Loan for Automobile Sales Finance Business in Mexico
Supporting Overseas Business Expansion of the Japanese Automobile Industry under the Growth Investment Facility
- Region: Latin America and the Caribbean
- Machinery and Equipment
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on July 7 a loan agreement totaling up to USD582 million (JBIC portion) with Nissan Motor Acceptance Corporation (NMAC), a U.S. subsidiary of Nissan Motor Co., Ltd. (Nissan). The loan is extended under JBIC's Growth Investment Facility.*1
It is co-financed with private financial institutions, bringing the total co-financing amount to approximately USD1,213 million.
This loan is intended to partially finance, through NMAC, the funds required by NR Finance Mexico S.A. de C.V., a Mexican subsidiary of Nissan, to conduct sales finance business for Nissan-branded automobiles in Mexico.
Mexico's domestic automobile sales in 2019 were approximately 1.35 million vehicles, making it the 14th largest car market in the world. For Japanese automakers with a substantial presence in Mexico, the country is important not only as a production base for exports to the countries in the Americas, but also as a domestic sales market. Its automobile market has a high usage rate of sales financing for purchases. Therefore, automobile sales finance is an indispensable tool for the business strategy of individual automakers to promote sales and increase market shares in the country. This loan will provide financial support for the overseas business deployment of Japanese automakers through funding automobile sales finance business, thereby serving to maintain and improve the international competitiveness of the Japanese automobile industry.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.