Daily Management Review

Mazda sets to raise $ 2.8B loan


Japanese automaker Mazda Motor is negotiating with a group of banks, in particular, MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank, to raise a credit line worth 300 billion yen ($ 2.8 billion) to maintain the company's liquidity in the midst of a coronavirus pandemic, Nikkei Asian Review reports, citing sources familiar with the situation.

The publication notes that the carmaker intends to use the credit received to replenish the cash reserve after the cash flow of the company fell to negative values against the background of the coronavirus. In particular, this is due to a sharp drop in sales both in the domestic Japanese market and abroad: in February, the figure fell by 14% compared to last year, and in March fell by 33%. In addition, work at most plants in Japan and other countries has been stopped since late March.

In addition to requests to MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank, the Japanese Mazda Motor also applied for a credit line to the State Development Bank of Japan and Sumitomo Mitsui Trust Bank.

Earlier, similar plans were announced by other Japanese automakers - Nissan Motor and Toyota Motor. So, Nissan wants to attract a credit line in the amount of 500 billion yen ($ 4.6 billion), and Toyota - about 6 trillion yen (about $ 55 billion).

source: asia.nikkei.com