Nissan seen raising 750 B. yen by selling new bonds
Struggling Nissan Motor Co. is seen raising around 750 billion yen by selling new corporate bonds to cover the costs of repaying existing bonds and developing electric vehicles, it was learned Monday.
On the day, Nissan announced a plan to issue 150 billion yen in convertible bonds, or bonds with stock acquisition rights, that mature in 2031. The company also plans to issue dollar- and euro-denominated straight bonds, informed sources said.
The company plans to use proceeds from the convertible bonds, which will be issued later this month, to expand its EV lineup and develop next-generation vehicles, including those that can be upgraded through software updates.
Meanwhile, proceeds from the straight bonds are expected to finance the redemption of bonds maturing in fiscal 2025, which total 558 billion yen.
In fiscal 2024, Nissan incurred a net loss of about 670 billion yen. It is implementing measures to improve management efficiency, including cutting 20,000 jobs globally and closing seven plants, while seeking to strengthen its financial base.
[Copyright The Jiji Press, Ltd.]
