Nissan to issue $8bn in dollar-denominated debt, mulls euro bonds
TOKYO (Japan), September 12, 2020
Japan's Nissan Motor Company will issue $8 billion in dollar-denominated debt and is considering euro-denominated bonds, it said on Friday, as the troubled automaker looks to diversify its funding.
The bond sale is its first dollar-denominated issuance since its tie-up with France's Renault in 1999, Reuters reported citing a Nissan representative.
It comes as investors have expressed deepening concern about Nissan, which has warned of a record $4.5 billion loss this year as the pandemic hampers its turnaround efforts.
Separately, IFR reported Nissan would sell some 2 billion euros in euro-denominated debt. A Nissan spokeswoman said an issuance was under discussion, without confirming the figure.
The company will sell a $1.5 billion, 3-year bond with a coupon of 3.043%, and a $1.5 billion, 5-year bond with a coupon of 3.522%, according to IFR.
Nissan had pledged to cut 300 billion yen ($2.83 billion) from annual fixed costs and become a smaller, more efficient company, Reuters reported.
Japan’s second-largest carmaker is trying to recover from a rapid expansion that has left it with dismal margins and an ageing portfolio. Its business has also been rocked by the arrest of long-time boss Carlos Ghosn, it added.
