Loan for Automobile Sales Finance Business in Brazil
Supporting Overseas Business Expansion of Japanese Automobile Industry under the Growth Investment Facility
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC, Governor: MAEDA Tadashi) signed on October 7 a loan agreement amounting to up to USD78 million (JBIC portion) with Banco Honda S.A. (BHB), a Brazilian subsidiary of Honda Motor Co., Ltd. (Honda). The loan is provided under JBIC’s Growth Investment Facility*1
and is co-financed with a private financial institution, bringing the total co-financing amount to approximately USD130 million.
This loan is intended to finance part of the necessary funds for BHB to conduct the sales finance business of Honda-branded motorcycles and automobiles in Brazil.
Brazil is the largest market for sales of both motorcycles and automobiles in South America and is an important market for Japanese automobile manufacturers, including Honda. As automobile sales finance is often used when purchasing a vehicle in Brazil, the sales finance business has become an important strategy for manufacturers to increase their sales. This loan supports the overseas business deployment of one such Japanese automaker, 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 expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.