Yamaha Motor Co., Ltd. (YMC) announces the signing on January 11, 1999, of an agreement with a syndicate of 11 Japanese and international banks to set up a Global Commitment Line by multiple finance institutions for Yamaha Group companies in Japan, the U.S. and Europe.
The agreement makes available to Yamaha Motor Co., Ltd., Yamaha Motor Corp.U.S.A. (YMUS) and Yamaha Motor Finance (Europe) B.V. (YMFE) a committed credit line equivalent to US$ 220 million for a period of 364 days (with planned agreement renewal after each contract period). The Dai-Ichi Kangyo Bank, Ltd. will act as the coordinating bank for the syndicate. The three companies of the Yamaha Group will have free access to this credit line up to the total limit of US$ 220 million.
Thanks to this agreement, the Yamaha Group will be able to reduce its financial system risks caused by the worldwide credit crunch while at the same time enabling more diversified fund procurement as a financial safeguard for the entire group. Furthermore, since Group companies will no longer need to retain their own surplus balances of funds in order to guarantee financial stability, the Group will be able to reduce its consolidated debt and increase its fund procurement maneuverability.
The establishment of this Global Commitment Line, by strengthening the Group's financial structure, will help achieve the Yamaha corporate goal set for the present year of transforming its constitution, and of restructuring and strengthening international competitiveness in order to achieve its long-term vision of building a firm foundation for the 21st century.