Mitsubishi Motors, JBIC ink loan agreement

MANILA, Philippines — The Philippine subsidiary of Japanese car maker Mitsubishi Motors Corp. is tapping up to $110 million worth of loan from the Japan Bank for International Cooperation (JBIC) to support manufacturing operations.

In a statement, JBIC said it signed a loan agreement with Mitsubishi Motors Philippines Corp. (MMPC) worth up to $110 million under the Growth Investment Facility.

“The loan is co-financed with private financial institutions, bringing the total co-financing amount to approximately $187 million,” JBIC said.

JBIC said the loan is intended to be used by MMPC to manufacture and sell automobiles.

“This loan is intended to support Mitsubishi Motors’ overseas business in the Philippines, which is strategically important in the ASEAN (Association of Southeast Asian Nations) region for the company, contributing to maintaining and improving the international competitiveness of the Japanese automobile industry,” JBIC said.

Under Mitsubishi Motors Corp.’s mid-term business plan for this year until 2022, the company aims to focus its resources in ASEAN to grow its market share by strengthening its production operations and sales network.

Mitsubishi Motors Corp. plans to export the L300 commercial vehicle being produced in the Philippines to other Southeast Asian countries.

MMPC currently assembles the L300 and the Mirage G4 sedan at its plant in Laguna.

Should MMPC begin shipping the L300 overseas, it would be the first automotive firm in the country to export vehicles.

As part of Mitsubishi Motors Corp.’s mid-term business plan, the firm also wants vehicle sales in the Philippines to increase to 80,000 units by 2022 from 61,000 units in fiscal year 2019.

JBIC is supporting the overseas business expansion of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and by assuming risks.