v3.26.1
Debt
 3 Months Ended
Jun. 30, 2026
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, and weighted average contractual interest rates were as follows:
 
Weighted average
contractual interest rate (1)
June 30, 2026March 31, 2026June 30, 2026March 31, 2026
(U.S. dollars in millions)
Unsecured debt:
Commercial paper$5,638 $2,929 3.83 %3.64 %
Bank loans2,355 2,382 3.73 %3.73 %
Public MTN Program39,084 40,726 4.01 %3.91 %
Other debt3,199 3,407 3.76 %3.74 %
Total unsecured debt50,276 49,444 
Secured debt14,908 15,344 4.29 %4.33 %
Total debt$65,184 $64,788 
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(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 3.83% and 3.77% as of June 30, 2026 and March 31, 2026, respectively.
 
As of June 30, 2026, the outstanding principal balance of long-term debt with floating interest rates totaled $11.7 billion, long-term debt with fixed interest rates totaled $47.4 billion, and short-term debt with floating or fixed interest rates totaled $6.2 billion. As of March 31, 2026, the outstanding principal balance of long-term debt with floating interest rates totaled $14.2 billion, long-term debt with fixed interest rates totaled $46.7 billion, and short-term debt with floating or fixed interest rates totaled $4.1 billion.
Commercial Paper
As of both June 30, 2026 and March 31, 2026, the Company had commercial paper programs that provide the Company with available funds of up to $10.3 billion, 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 $4.0 billion and $6.6 billion during the three months ended June 30, 2026 and 2025, respectively. The maximum balance outstanding at any month-end during the three months ended June 30, 2026 and 2025 was $5.6 billion and $7.3 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 incurred no interest expense on related party debt for the three months ended June 30, 2026 and incurred $20 million for the three months ended June 30, 2025.
Bank Loans
Outstanding bank loans at June 30, 2026 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 June 30, 2026 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 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 June 30, 2026 were 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 June 30, 2026 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 June 30, 2026 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 an $8.5 billion syndicated bank credit facility that includes a $2.8 billion 364-day credit agreement, which expires on February 19, 2027, a $2.8 billion credit agreement, which expires on February 20, 2029, and a $2.8 billion credit agreement, which expires on February 20, 2031. As of June 30, 2026, 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 $1.4 billion syndicated bank credit facility that includes a $704 million credit agreement, which expires on March 25, 2027 and a $704 million credit agreement, which expires on March 25, 2029. As of June 30, 2026, 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.
These credit agreements contain customary covenants, including limitations on liens, mergers, consolidations and asset sales and affiliate transactions. Loans drawn from these credit agreements would 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 June 30, 2026, 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.