Nissan Motor Company is looking to raise up to JPY 1 trillion (US$ 7 bn) this year from the issuance of new corporate bonds and by selling assets, as it faces massive bond redemptions and restructuring costs, according to local reports citing a company source.
The struggling Japanese automaker is understood to be facing bond redemptions worth around JPY 780 billion in the current fiscal year (FY2025), ending on 31st March 2026. The company is also facing substantial restructuring costs, after it announced plans to reduce its number of global vehicle production plants from 17 to 10 by FY2027, cutting around 20,000 jobs.
Go deeper with GlobalData
As well as issuing new convertible bonds worth JPY 630 billion, Nissan is also looking to sell non-core assets including shares in affiliated companies and real estate assets. This includes selling and leasing back its head office building in Yokohama and selling properties in the US. The automaker also plans to sell part of its 15% stake in its Alliance partner Renault and its entire shareholding in battery manufacturer AESC Group this year.
Separate reports suggested Nissan is looking to secure a GBP 1 bn loan guaranteed by UK Export Finance, a British government-linked institution, to help safeguard its UK manufacturing operations. Among the expected plant closures are facilities in Japan, Mexico, and South Africa.
Nissan is understood to be aiming to raise a large proportion of the funds in the next few months.
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
