Nissan Motor Company is facing significant financial challenges and is looking to raise up to JPY 1 trillion (US$ 7 bn) this year through the issuance of new corporate bonds and asset sales. The company is dealing with bond redemptions of around JPY 780 billion in the current fiscal year and substantial restructuring costs due to plans to reduce its global vehicle production plants and cut around 20,000 jobs.
To raise funds, Nissan plans to issue new convertible bonds worth JPY 630 billion and sell non-core assets such as shares in affiliated companies and real estate assets. This includes selling and leasing back its head office building in Yokohama and properties in the US. The automaker also intends to sell part of its stake in Alliance partner Renault and its entire shareholding in battery manufacturer AESC Group.
Additionally, Nissan is seeking a GBP 1 billion loan guaranteed by UK Export Finance to support its UK manufacturing operations. The company is expected to close plants in Japan, Mexico, and South Africa as part of its restructuring efforts.
Nissan aims to secure a large portion of the funds in the next few months to address its financial obligations and restructuring plans.
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