TOKYO: Nissan Motor Co 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 SA in 1999, a Nissan representative said.
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 EUR2 billion 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, three-year bond with a coupon of 3.043 per cent, and a $1.5 billion, five-year bond with a coupon of 3.522 per cent, according to IFR.
Its $2.5 billion, seven-year bond carries a coupon of 4.345 per cent and another $2.5 billion bond, a 10-year, carries a 4.81 per cent coupon, IFR said.
Nissan had pledged to cut $2.83 billion from annual fixed costs and become a smaller, more efficient company. 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.