Mazda Motor Corp seeks loans an amount of around 300 billion yen ($2.8 billion) from three banks in Japan and other lenders to ride out the coronavirus epidemic, a reliable source said on Saturday.
The megabanks – Mitsubishi UFJ Financial Group (8306.T), Sumitomo Mitsui Financial Group (8316.T) and Mizuho Financial Group (8411.T) – together with the Development Bank of Japan, Sumitomo Mitsui Trust Holdings (8309.T) and others are set to agree, with some already having extended the loans, the person said, denying to be recognized as the data isn’t public.
All three megabanks declined to make comments on the loan request, which was reported by the Nikkei business daily earlier. Mazda did not immediately respond to a request for comment.
Mazda, like most other automakers, has reduced or halted production at factories round the globe for the past few months as governments try to limit the spread of the new coronavirus.
Mazda’s car sales and record had been weak even before the virus slammed the brakes on demand, with its interest-bearing debt of 650 billion yen far exceeding its cash and cash equivalents, reports the Nikkei.
