Honda Motor Co., the nation's second-largest carmaker, may raise about ¥100 billion by selling asset-backed securities or commercial paper to fund car loans as it expects demand to recover later this year.
The credit environment "has changed dramatically," said Executive Vice President Koichi Kondo in an interview Thursday, adding that the funds would also be used to repay debt. Interest rates "may be the cheapest we've ever borrowed at."
Honda expects global vehicle sales to rise to 1.65 million units in the second half of the year ending in March, compared with 1.55 million units in the first half. More people buying cars will require more money available for loans, Kondo said.