Toyota Financial Services Corp., the auto loan arm of Toyota Motor Corp., is asking the government-backed Japan Bank for International Cooperation for a loan of about ¥200 billion to fund its operations in the United States, Toyota sources said Tuesday.
The wholly owned subsidiary is taking advantage of an emergency financing facility recently set up by JBIC to help companies operating abroad that are having difficulty raising funds, they said.
Toyota Financial Services, which finances automobile purchases around the world, is the first auto company to publicly tap the government facility.
But others are likely to follow at a time when even companies with high creditworthiness are having trouble getting private-sector loans amid the global financial crisis.
The global recession has also forced General Motors Corp. and Chrysler LLC to get bailouts from the U.S. government.
"Toyota should take advantage of anything it can to get through this crisis," said Hitoshi Yamamoto, chief executive officer of Tokyo-based Fortis Asset Management Japan Co., which manages $5.5 billion in Japanese equities. "Money is not flowing in the capital markets."
Toyota reportedly has ¥2.34 trillion in loans and bonds maturing this year. Automakers usually raise funds through bonds and loans for their financial companies to offer loans for their customers.