Nissan Financial Services Gets Funding

The recession has put automakers in a difficult position, as banks refused to finance new-car sales. So the car manufacturers were forced to find a solution to the problem on their own if they wanted to continue selling cars. That’s how auto financier Nissan Financial Services Australia Pty Ltd (NFSA), a wholly owned subsidiary of Nissan Motor Company Australia Pty Ltd, was born.

This proved to be a very successful business, as NFSA today announced that it has raised over $160M of medium term funding. The company is supported by highly rated international financial institutions, including a Japanese government backed financier. The pricing equivalent to highly rated corporate securities, combined fixed and variable interest rate elements, raised in Australian dollars swapped from US dollars on the international market.

“This is great news for our stakeholders, and is a signal of confidence by the investment community in the Australian manufacturer backed auto finance sector. It also shows that the global positioning of the Nissan brand is solid and has come through the financial crisis with good momentum,” said Nissan Financial Services, Executive Director, George Leondis.

The new funding will be used by NFSA to expand its financing rapidly and will help to support Nissan’s planned growth in Australia.

“This transaction has significant flexibility for us to work constructively with our banking and financial partners on further funding opportunities, through a combination of senior debt facilities and structured products, and to accelerate our book of auto loan receivables in the medium term,” Leondis commented further.