Loan for Automobile Sales Finance Business in Russia
Supporting Overseas Business Deployment of Japanese Automobile Industry with Local Currency Loans
- Region: Europe
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement in Russian ruble (RUB) with AO Toyota Bank (TBR), a Russian group company of Toyota Financial Services Corporation (TFS). The loan is co-financed with a private financial institution.
The loan is intended to finance part of the funds necessary for TBR to conduct the sales finance business mainly for Toyota brand automobiles in Russia, following loans in October 2016*1
, February 2018*2
, and March 2019*3
Russia is one of the world’s leading automotive markets, and continues to be crucial for Toyota Motor Corporation and other Japanese automakers. As automobile sales finance is often used when purchasing a vehicle in Russia, the sales finance business has become an important strategy for manufacturers to increase their sales. This local currency denominated loan supports the overseas business deployment of one such Japanese automaker, thereby contributing toward 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 and schemes for structuring projects and performing its risk-assuming function.