Nissan to issue $8 billion in dollar-denominated debt

0
12
FILE PHOTO: The brand logo of Nissan Motor Corp. is displayed during a press preview of the company's new Ariya all-battery SUV in Yokohama

TOKYO (Reuters) – Japan’s Nissan Motor Co <7201.T> 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 <RENA.PA> 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 2 billion euros ($2.37 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, 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.

Its $2.5 billion, 7-year bond carries a coupon of 4.345% and another $2.5 billion bond, a 10-year, carries a 4.81% coupon, IFR said.

Nissan had pledged to cut 300 billion yen ($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.

(Reporting by Noriyuki Hirata; writing by David Dolan; editing by Alex Richardson, Jason Neely and Emelia Sithole-Matarise)

tagreuters.com2020binary_LYNXMPEG8A1BI-VIEWIMAGE

LEAVE A REPLY

Please enter your comment!
Please enter your name here