Honda Motor Co (7267.T) plans to periodically issue asset-backed securities in the United States to accommodate the expected recovery in car sales and longer-term funding needs, the Nikkei business daily said.
Men look at Honda cars outside a showroom in downtown Tokyo
April 28, 2009. Reuters/Michael Caronna
The automaker, which recently raised $1.5 billion with securities backed by its auto loans, plans to continue getting a similar amount every two to three months or so through group subsidiary American Honda Finance Corp, the daily said.
Honda resumed asset-backed securities issuances for the first time in six months last December, floating slightly less than 30 billion yen ($310.7 million), it said.
But now, the company plans to scale up offerings to around 150 billion yen on a regular basis, reflecting improved market conditions, the report said.
Our ABS issuances are returning to the pace prior to the global financial crisis, the daily quoted Yoichi Hojo, a director, as saying.
Honda's cash on hand on a group basis came to 690.3 billion yen at the end of March, down 34 percent from a year earlier, the daily said.
While Honda does not face any funding woes, it still plans to continue building up cash reserves for investing in emerging markets and developing environmentally friendly cars, the report said.
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