Loan for Automobile Sales Finance Business in United States
Supporting Overseas Business Expansion of Japanese Automobile Industry under the Growth Investment Facility
- Region: North America
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to up to USD2,000 million (JBIC portion) with Nissan Motor Acceptance Corporation (NMAC), a US subsidiary of Nissan Motor Co., Ltd. (Nissan). The loan is extended under JBIC’s Growth Investment Facility*1
, and is co-financed with private financial institutions, bringing the total co-financing amount to USD4,100 million.
This loan is intended to partially provide the funds required by NMAC to conduct sales finance business for Nissan-branded automobiles in the United States.
The automobile market in the United States was the second largest in the world in FY2019 after China and is an important market for Japanese automobile manufacturers. As it has a high usage rate of sales financing for purchases, 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.