- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 7 a loan agreement amounting to up to approximately JPY13.9 billion (JBIC portion) with Banco Honda S.A. (BHB), a Brazilian subsidiary of Honda Motor Co., Ltd. (Honda). The loan is co-financed with Banco Mizuho do Brasil S.A., bringing the total co-financing amount to approximately JPY28.0 billion.
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This loan is intended to provide the funds necessary for BHB to conduct sales finance business for Honda-branded motorcycles and automobiles in Brazil*1.
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Brazil, the largest market for sales of both motorcycles and automobiles in South America, is an important market for Japanese automobile manufacturers, including Honda. As automobile sales finance is often used when purchasing a vehicle in Brazil, the sales finance business has become an indispensable tool for the business strategy of individual manufacturers to promote sales and increase market shares.
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This loan will support Honda’s overseas business deployment 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. Honda has been working to reduce greenhouse gas emissions to achieve “zero environmental impact” by 2050, and in Brazil, it mainly aims to popularize flexible fuel vehicles (FFVs)*2. 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.
Note
- *1
- *2
Vehicles designed to run on a blend of gasoline and one or more types of fuel, such as methanol or ethanol.