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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 4 a loan agreement amounting to up to THB14.5 billion (JBIC portion) with Toyota Leasing (Thailand) Co., Ltd. (TLT), a Thai subsidiary invested in by Toyota Financial Services Corporation (TFS) and other entities. The loan is co-financed with MUFG Bank, Ltd. and the Bank of Ayudhya Public Company Limited, which is a consolidated subsidiary of Mitsubishi UFJ Financial Group, Inc., bringing the total co-financing amount to THB24.3 billion.
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This loan is intended to provide the funds necessary for TLT to conduct the sales finance business for Toyota cars in Thailand
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Thailand, which ranked 10th in terms of car production and 17th in terms of car sales in the world in 2022, is an important base for both exports and domestic sales for Japanese automakers, which have a substantial presence in the country. As automobile sales finance is often used when purchasing a vehicle in Thailand, the sales finance business has become an indispensable tool in the business strategy of individual manufacturers for promoting sales and increasing market share.
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This local currency denominated loan will support the overseas business deployment of Toyota Motor Corporation (Toyota) by providing necessary funds for its automobile sales finance business, thereby contributing toward strengthening the resilience of supply chains as well as maintaining and improving the international competitiveness of the Japanese automobile industry. Toyota also aims to popularize all kinds of eco-friendly cars, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and hydrogen fuel cell electric vehicles (HFCEVs), based on a multi-pathway approach, which is one of its sustainability strategies, and the loan will contribute to the efforts to this end as well.
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As Japan's policy-based financial institution, JBIC will continue to provide financial support to help with efforts to enhance the supply chain resilience of Japanese industries and assist Japanese companies in the overseas expansion of their businesses.
