Mitsubishi Motors Corp., which said it will post a first-half loss because of United States customers' unpaid loans, is borrowing 181.3 billion yen ($1.6 billion) from banks to finance capital spending and redeem bonds, according to the Detroit News.

Japan's fourth-largest automaker is arranging loans from Bank of Tokyo-Mitsubishi Ltd. and almost 60 other lenders, company spokesman Fumio Nishizaki said. The company may be borrowing from banks because it's cheaper than selling bonds, said Jason Rogers, a credit analyst at Barclays Capital Japan Ltd.

Tokyo-based Mitsubishi, rated non-investment grade by Moody's Investors Service, is trying to reduce its 1 trillion yen debt, part of which was used to advance credit to customers to purchase vehicles, the News said. The company forecast a net loss of 80 billion yen for the sixth months ending Sept. 30, including a 50 billion yen charge to cover overdue auto loans in North America, according to the News.

"The company's problems in the U.S. are probably weighing on investors' perceptions at the moment," Rogers said. "With funding of that size, it probably makes more economic sense for them to finance in this way, rather than go to the bond markets."