The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 31 a loan agreement amounting to up to approximately USD286 million (JBIC portion) with Mitsubishi Motors Finance Philippines Inc. (MMFP), a Philippine subsidiary of Mitsubishi Motors Corporation (Mitsubishi Motors). The loan is co-financed with MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately USD573 million equivalent.
The loan is intended to finance the funds necessary for MMFP to conduct sales finance business for Mitsubishi-branded cars in the Philippines.
Mitsubishi Motors aims to concentrate its management resources on the ASEAN region, where it is competitive, and maintain and expand market share by enhancing its sales network. Among them, the automotive market in the Philippines has continued to grow steadily in recent years and has become an important market for Mitsubishi Motors. As the sales finance business is often used when purchasing a vehicle in the Philippines, it has become an indispensable tool for the business strategy of individual manufacturers to promote sales and increase market share.
This loan will support Mitsubishi Motors’ overseas business expansion by providing necessary funds for its sales finance business, thereby contributing toward strengthening the resilience of supply chains as well as maintaining and improving the international competitiveness of the automotive industry, a core industry in Japan.
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.
