Loan for Automotive Parts Manufacturing and Sales Business of Yazaki Corporation’s Mexican Subsidiary
Supporting Overseas Business Expansion of Japanese Automotive Part Manufacturer 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 15 (Mexican time) a loan agreement amounting to up to USD30 million (JBIC portion) with Arnecom, S.A. de C.V. (ARNECOM), a Mexican subsidiary of Yazaki Corporation (Yazaki). The loan is provided under JBIC’s Growth Investment Facility*1
and is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to USD50 million.
This loan is intended to provide the necessary funds for ARNECOM to manufacture and sell automotive parts such as wire harnesses in the United Mexican States (Mexico).
For automobile manufacturers, Mexico is a core production base for automobiles and automotive parts. ARNECOM is the manufacturing and sales base for products targeted to the Mexican domestic market and is also the product supply center for Yazaki’s affiliates in the United States. It is therefore a crucial subsidiary for the Japanese company to expand its business in the Americas. The loan will support Yazaki’s overseas business expansion and will contribute to maintaining and strengthening the international competitiveness of Japanese 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 performing its risk-assuming function.