Loan for Financial Services Business in Brazil Including Motorcycle Sales Finance
Supporting Overseas Business Expansion That Contributes toward Enhancing Supply Chain Resilience of Japanese Automobile Industry

• Region: Latin America and the Caribbean
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 29 a loan agreement amounting to up to approximately JPY6.7 billion (JBIC portion) with Banco Yamaha Motor do Brasil S.A. (BYMD), a Brazilian subsidiary of Yamaha Motor Co., Ltd. (Yamaha Motor). The loan is co-financed with Banco Mizuho do Brasil S.A., bringing the total co-financing amount to approximately JPY13.9 billion.
     
2. This loan is intended to finance the necessary funds for BYMD to conduct a financial services business, including sales finance for Yamaha-branded motorcycles in Brazil.
     
3. Brazil, one of the leading motorcycle markets in South America, has seen sales grow at an annual average rate of 20% since 2021. Over 1.5 million units are manufactured and sold annually. Brazil is an important base for production and sales for Japanese motorcycle manufacturers, which have a substantial presence there. As automobile sales finance is often used when purchasing a motorcycle in the country, the sales finance business has become an indispensable tool for the business strategy of individual manufacturers to promote sales and increase market shares.
     
4. The loan will support Yamaha Motor’s overseas business deployment by providing necessary funds for its motorcycle finance services business, thereby contributing toward strengthening the resilience of supply chains as well as maintaining and improving the international competitiveness of the Japanese automobile industry. Yamaha Motor has set a goal for 90% of its model composition to be battery electric vehicles (BEVs) by 2050, based on its sustainability strategy Yamaha Motor Group Environmental Plan 2050. In Brazil, it mainly aims to popularize flexible fuel vehicles (FFVs)^*1. The loan will contribute to the efforts to this end as well.
     
5. 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.
     

Note

1. *1 
   Vehicles designed to run on a blend of gasoline and one or more types of fuel, such as methanol or ethanol.