Loan for Automobile Sales Finance Business in Thailand
Supporting Overseas Business Deployment of Japanese Automobile Industry with Local Currency Loan under the Growth Investment Facility
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on August 7 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, under JBIC's Growth Investment Facility*1
. The loan is co-financed with private financial institutions.
This loan is intended to finance part of the funds necessary for TLT to conduct sales finance business for Toyota-branded cars in Thailand.
The automotive market in Thailand has been expanding due to population increase and economic growth, and it continues to be crucial for Toyota Motor Corporation and other Japanese automakers which maintain a strong presence in Thailand. As automobile sales finance is often used upon purchase in Thailand, sales finance business has become an important strategic tool for each manufacturer to increase its sales. This loan supports the overseas business deployment of such a Japanese automaker through financing in the local currency, and it contributes 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.