Nissan to raise 1 tril. yen by issuing debt, selling assets: source
KYODO NEWS - 9 hours ago - 23:59 | All, Japan
Ailing Nissan Motor Co. is planning to raise around 1 trillion yen ($7 billion) by issuing corporate bonds and selling assets to secure funds as it approaches a massive bond redemption, a company source said Wednesday.
Nissan and its affiliated companies face the redemption of roughly 780 billion yen in corporate bonds during the current fiscal year through March. It also requires funds to cover costs related to plant closures and other restructuring measures.
The source said the fund-raising plan was explained to directors by executive officers. The company aims to secure a portion of the funds by around the summer.
In addition to issuing debt, Nissan is considering selling real estate and stocks it holds and may seek loans guaranteed by a British government-linked institution, the source said.
Japan's third-biggest automaker by volume, which has been grappling with poor sales in the United States and China, is stepping up its streamlining efforts after logging a net loss of 670.90 billion yen for fiscal 2024.
The company said on May 13 it will shut seven vehicle plants and cut 20,000 jobs globally.
Related coverage:
Former top execs of struggling Nissan got $4.5 mil severance pay
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