Mazda Motor plans to raise JPY170bn in fresh capital in a bid to restore its finances hit by years of losses, “informed sources” have said.
Theautomaker aims to raise some JPY100bn through a public share offering, while receiving subordinated loans worth JPY70bn from its lenders, including Sumitomo Mitsui Banking, a unit of Sumitomo Mitsui Financial Group, the sources told Jiji Press.
Go deeper with GlobalData
Mazda has seen its earnings eroded by the strong yen due to its relatively high ratio of domestic production to overseas output. The company is accelerating its drive to shift production abroad, chiefly to emerging economies, including a plant being built in Mexico jointly with Japanese trading house Sumitomo.
The proceeds from the funding are expected to be used to finance construction of offshore factories, the sources said.
In April-December 2011, Mazda incurred a group net loss of JPY112.8bn owing to production disruptions caused by the disasters in Japan and Thailand.
Although the automaker projects a return to profitability in the January-March 2012 fourth quarter, it is still bracing for a full-year net loss of JPY100bn, the fourth straight year of red ink.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
