v3.25.2
Debt
 12 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
The Company issues debt in various currencies with both floating and fixed interest rates. Outstanding debt net of discounts and fees, weighted average contractual interest rates and range of contractual interest rates were as follows:
Weighted average
contractual interest rate (1)
Contractual
interest rate ranges
March 31,March 31,March 31,
202520242025202420252024
(U.S. dollars in millions)
Unsecured debt:
Commercial paper$6,022 $5,293 4.36 %5.64 %
2.73 - 4.70%
5.02 - 5.70%
Related party debt1,800 — 4.59 %— %
4.59 - 4.60%
— - —%
Bank loans2,100 1,804 4.56 %6.05 %
3.59 - 5.27%
5.68 - 6.57%
Public MTN program37,153 31,151 4.02 %3.58 %
0.30 - 5.85%
0.30 - 6.06%
Other debt3,088 3,318 3.53 %3.59 %
1.34 - 5.73%
1.34 - 6.40%
Total unsecured debt50,163 41,566 
Secured debt12,384 9,351 4.77 %4.56 %
0.88 - 5.87%
0.27 - 5.94%
Total debt
$62,547 $50,917 
_______________________
(1)Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields.
As of March 31, 2025, the outstanding principal balance of long-term debt with floating interest rates totaled $9.7 billion, long-term debt with fixed interest rates totaled $42.7 billion, and short-term debt with floating and fixed interest rates totaled $10.1 billion. As of March 31, 2024, the outstanding principal balance of long-term debt with floating interest rates totaled $7.7 billion, long-term debt with fixed interest rates totaled $36.9 billion, and short-term debt with floating and fixed interest rates totaled $6.3 billion.
The Company’s secured debt is amortizing, and unsecured debt is non-amortizing. Scheduled and projected maturities of the Company’s debt at March 31, 2025 are summarized below:

20262027202820292030ThereafterTotal
(U.S. dollars in millions)
Unsecured debt:
Commercial paper$6,060 $— $— $— $— $— $6,060 
Related party debt1,800 — — — — — 1,800 
Bank loans1,028 743 174 — 156 — 2,101 
Public MTN program9,375 8,706 6,307 4,947 1,250 6,653 37,238 
Other debt869 417 904 556 348 — 3,094 
Total unsecured debt19,132 9,866 7,385 5,503 1,754 6,653 50,293 
Secured debt (1)
6,289 3,981 1,874 258 — — 12,402 
Total debt (2)
$25,421 $13,847 $9,259 $5,761 $1,754 $6,653 $62,695 
Unamortized discounts/fees(148)
Total debt, net$62,547 
________________________
(1)Projected repayment schedule of secured debt. Reflects payment performance assumptions on underlying assets.
(2)Principal amounts.
Commercial Paper
As of March 31, 2025 and 2024, the Company had commercial paper programs that provide the Company with available funds of up to $8.7 billion and $8.8 billion, respectively, at prevailing market interest rates for terms up to one year. The commercial paper programs are supported by the Keep Well Agreements with HMC described in Note 6.
Outstanding commercial paper averaged $5.9 billion and $6.6 billion during the fiscal year ended March 31, 2025 and 2024, respectively. The maximum balance outstanding at any month-end was $7.4 billion and $7.2 billion during the fiscal year ended March 31, 2025 and 2024, respectively.
Related Party Debt
From time to time, AHFC issues fixed rate short-term debt to AHM to fund AHFC's general corporate operations. The Company incurred interest expense on related party debt totaling $11 million for the fiscal year ended March 31, 2025.
Bank Loans
Outstanding bank loans at March 31, 2025 and 2024 were short-term and long-term, with either fixed or floating interest rates, and denominated in U.S. dollars or Canadian dollars. Outstanding bank loans have prepayment options. No outstanding bank loans as of March 31, 2025 and 2024 were supported by the Keep Well Agreements with HMC described in Note 6. Outstanding bank loans contain certain covenants, including limitations on liens, mergers, consolidations and asset sales.
Public MTN Program
In August 2024, AHFC increased its Public MTN program by filing a prospectus supplement with the SEC under which it may issue from time to time up to $45.0 billion aggregate principal amount of Public MTNs pursuant to the Public MTN program. The aggregate principal amount of MTNs offered under this program may be increased from time to time. Notes outstanding under the Public MTN program as of March 31, 2025 were short -term and long-term, with either fixed or floating interest rates, and denominated in U.S. dollars, Euro or Sterling. Notes under this program are issued pursuant to an indenture which contains certain covenants, including negative pledge provisions and limitations on mergers, consolidations and asset sales.
The Public MTN program is supported by the Keep Well Agreement with HMC described in Note 6.
Other Debt
The outstanding balances as of March 31, 2025 and 2024 consisted of private placement debt issued by HCFI which are long-term, with either fixed or floating interest rates, and denominated in Canadian dollars. Private placement debt is supported by the Keep Well Agreement with HMC described in Note 6. The notes are issued pursuant to the terms of an indenture which contain certain covenants, including negative pledge provisions.
Secured Debt
The Company issues secured debt through financing transactions that are secured by assets held by issuing SPEs. Secured debt outstanding as of March 31, 2025 and 2024 were long-term and short-term, with either fixed or floating interest rates, and denominated in U.S. dollars or Canadian dollars. Repayment of the secured debt is dependent on the performance of the underlying retail loans. Refer to Note 10 for additional information on the Company’s secured financing transactions.
Credit Agreements
Syndicated Bank Credit Facilities
AHFC maintains a $7.0 billion syndicated bank credit facility that includes a $3.5 billion credit agreement, which expires on February 20, 2026, a $2.1 billion credit agreement, which expires on February 25, 2026, and a $1.4 billion credit agreement, which expires on February 25, 2028. As of March 31, 2025, no amounts were drawn upon under the AHFC credit agreements. AHFC intends to renew or replace these credit agreements prior to or on their respective expiration dates.
HCFI maintains a $1.4 billion syndicated bank credit facility that includes a $695 million credit agreement, which expires on March 25, 2026 and $695 million credit agreement, which expires on March 25, 2027. As of March 31, 2025, no amounts were drawn upon under the HCFI credit agreements. HCFI intends to renew or replace the credit agreements prior to or on the expiration dates.
The credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales and affiliate transactions. Loans, if any, under the credit agreements will be supported by the Keep Well Agreement described in Note 6.
Other Credit Agreements
AHFC maintains other committed lines of credit that allow the Company access to an additional $1.0 billion in unsecured funding with two banks. The credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales. As of March 31, 2025, no amounts were drawn upon under these agreements. These agreements expire in September 2025. The Company intends to renew or replace these credit agreements prior to or on their respective expiration dates.