Mazda Motor has sought loans amounting to about 300 billion yen ($2.8 billion) from Japan’s three megabanks and other lenders to survive during coronavirus epidemic, a source with direct knowledge of the matter stated on Saturday.
The megabanks such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group together with the Development Bank of Japan, Sumitomo Mitsui Trust Holdings and others are going to agree, with some already having extended the loans, the source said.
All three megabanks refused to comment on the loan request, which was reported by the Nikkei business daily. Mazda is yet to make a comment.
Mazda, like nearly all other automakers, has decreased or stopped production at factories across the world for the last few months as governments try to limit the spread of Covid-19 coronavirus.
Mazda’s car sales and balance sheet had been declining even before the virus hit the demand, with its interest-bearing debt of 650 billion yen far exceeding its cash and cash equivalents, the Nikkei noted.
Mazda is scheduled to reveal its financial results for the year ended in March on Thursday.