Japan’s Mazda Motor seeks $2.8 billion in fresh debts to see through pandemic

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Japan’s Mazda Motor seeks $2.8 billion in fresh debts to see through pandemic

Mazda Motor Corp., the Hiroshima-based century-old Japanese multinational automaker, often dubbed as simply Mazda, has been on the forefront to seek roughly $2.8 billion or 300 billion Japanese Yen in fresh debts from three of the largest lenders in Japan alongside others in order to weather the consequential repercussions of the pandemic outbreak, a source directly briefed over the subject-matter had unveiled on Saturday, the 9th of May 2020, on condition of anonymity as the source was not authorized to speak over the issue public.

On top of that, as reported earlier in a Nikkei business daily newspaper report, the source was also quoted saying on Saturday (May 9th) that three Japanese megabanks such as Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group alongside the Development Bank of Japan and Sumitomo Mitsui Trust holdings and others had been well poised to roll out the fresh funding, while some of the lenders had reportedly extended the debts already.

As a matter of fact, likewise other automakers across the world, Mazda had either reduced or stalled production lines at all of its factories over the past few months due to the pandemic-driven forced lockdown inclined by more than 200 Governments across the globe.

In tandem, analysts said the Japanese automaker appeared to be more vulnerable to the pandemic-led downturn in sales since its balance sheet had been much-bleaker than expected even before the pandemic had slammed the supply chains and demands.

Nonetheless, all three megabanks that Nikkei business daily reported were set to approve the loan request, had declined to comment on Saturday (May 9th) while being asked over the issue.