Loan for Automobile Sales Finance Business in Brazil
Supporting Overseas Business Expansion of Japanese Automotive 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 February 20 a loan agreement amounting to up to USD108 million (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., a subsidiary of Mizuho Financial Group, Inc., bringing the total co-financing amount to USD180 million.
     
2. 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.
     
3. 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. Honda has been working to reduce greenhouse gas (GHG) emissions to achieve carbon neutrality by 2050, and in Brazil, it promotes the widespread adoption of flexible fuel vehicles (FFVs)^*2.
     
4. By supporting Honda’s automobile sales finance business, which is essential for its overseas business expansion, this loan will help strengthen the resilience of Japan’s automotive supply chains and maintain and enhance the international competitiveness of the automotive industry, one of Japan’s core industries. The loan will also support the company’s efforts in Brazil to reduce GHG emissions through the promotion of FFVs.
     
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 
   The loan follows similar loans made to BHB in July 28, 2016 , October 8, 2020 , March 5, 2024, and March 14, 2025.
2. *2 
   Vehicles designed to run on a blend of gasoline and one or more types of fuel, such as methanol or ethanol.