v3.25.4
Debt
 9 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
The Company issues debt in various currencies with floating or 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
December 31, 2025March 31, 2025December 31, 2025March 31, 2025December 31, 2025March 31, 2025
 (U.S. dollars in millions)    
Unsecured debt:      
Commercial paper$4,341 $6,022 3.86 %4.36 %
2.40 - 4.23%
2.73 - 4.70%
Related party debt— 1,800 — %4.59 %
— - —%
4.59 - 4.60%
Bank loans2,219 2,100 3.79 %4.56 %
3.05 - 4.60%
3.59 - 5.27%
Public MTN Program41,365 37,153 3.97 %4.02 %
0.30 - 5.85%
0.30 - 5.85%
Other debt3,455 3,088 3.51 %3.53 %
1.34 - 5.73%
1.34 - 5.73%
Total unsecured debt51,380 50,163 
Secured debt14,433 12,384 4.49 %4.77 %
3.16 - 5.67%
0.88 - 5.87%
Total debt$65,813 $62,547 
_______________________
(1)Weighted average contractual interest rates for commercial paper are bond equivalent yields. Contractual interest rates approximate effective yields. Weighted average contractual interest rate of short-term debt was 3.95% and 4.54% as of December 31, 2025 and March 31, 2025, respectively.
 
As of December 31, 2025, the outstanding principal balance of long-term debt with floating interest rates totaled $14.7 billion, long-term debt with fixed interest rates totaled $45.7 billion, and short-term debt with floating or fixed interest rates totaled $5.5 billion. 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 or fixed interest rates totaled $10.1 billion.
Commercial Paper
As of December 31, 2025 and March 31, 2025, the Company had commercial paper programs that provide the Company with available funds of up to $8.8 billion and $8.7 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 $5.7 billion and $5.6 billion during the nine months ended December 31, 2025 and 2024, respectively. The maximum balance outstanding at any month-end during the nine months ended December 31, 2025 and 2024 was $7.3 billion and $6.7 billion, 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 did not incur interest expense on related party debt for the three months ended December 31, 2025 and incurred $28 million for the nine months ended December 31, 2025.
Bank Loans
Outstanding bank loans at December 31, 2025 were long-term, with floating interest rates, and denominated in U.S. dollars or Canadian dollars. Outstanding bank loans have prepayment options. No outstanding bank loans as of December 31, 2025 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 Medium-Term Note (MTN) Program (the Public MTN Program)
In August 2025, AHFC renewed its Public MTN Program by filing a registration statement with the SEC under which it may issue from time to time up to $45.0 billion aggregate principal amount of MTNs. The aggregate principal amount of MTNs offered under the Public MTN Program may be increased from time to time. MTNs outstanding under the Public MTN Program as of December 31, 2025 were short-term and long-term, with either fixed or floating interest rates, and denominated in U.S. dollars, Euro or Sterling. MTNs under the Public MTN 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 December 31, 2025 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 (Asset-Backed Securities)
The Company issues secured debt through financing transactions that are secured by assets held by issuing SPEs. Secured debt outstanding as of December 31, 2025 was 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 9 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, 2028, and a $1.4 billion credit agreement, which expires on February 25, 2030. As of December 31, 2025 and since its inception, no amounts were drawn upon under any of the AHFC credit agreements. AHFC intends to renew or replace these credit agreements prior to or on their respective expiration dates.
HCFI maintains a $1.5 billion syndicated bank credit facility that includes a $729 million credit agreement, which expires on March 25, 2026 and a $729 million credit agreement, which expires on March 25, 2027. As of December 31, 2025, no amounts were drawn upon under any of the HCFI credit agreements. HCFI intends to renew or replace these credit agreements prior to or on the expiration dates.
Each of the AHFC and HCFI credit agreements contains customary covenants, including limitations on liens, mergers, consolidations and asset sales and affiliate transactions. Loans, if any, under such 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. These credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales. As of December 31, 2025 and since their inception, no amounts were drawn upon under these credit agreements. These credit agreements expire in September 2026. The Company intends to renew or replace these credit agreements prior to or on their respective expiration dates.