Honda Says It Isn’t Planning U.S. Asset-Backed Security Sale

March 6 (Bloomberg) -- Honda Motor Co. said it doesn’t plan to issue new securities backed by auto loans after a Japanese news agency reported that the carmaker’s U.S. credit arm seeks to raise about $1 billion every few months from such sales.

Japan’s Nikkei English News said today that Honda’s American Honda Finance Corp. would regularly issue 100 billion yen ($1.02 billion) of asset-backed bonds, citing no sources. Nissan Motor Co.’s U.S. finance arm plans to raise a similar amount with ABS issues, Nikkei said.

“We aren’t currently issuing asset-backed securities,” said Marcos Frommer, a spokesman for Honda’s U.S. unit in Torrance, California. Economic conditions don’t favor such sales, he said.
Fred Standish, a spokesman for Nissan’s U.S. unit, said the company doesn’t discuss future financing options such as ABS sales. Nissan raised $475 million from an ABS sale in December, he said.

Honda and Nissan are both based in Tokyo.

Source;
http://www.bloomberg.com/apps/news?pid=20601101&sid=ap5LWT7nHhZE&refer=japan#