TOKYO – Nissan Motor will factor $8 billion into US dollar-denominated corporate bonds to offset expected low sales due to the pandemic, hoping to consolidate money reserves to succeed in the crisis.
Nissan issued domestic corporate bonds in July for the first time in 4 years. Due to the company’s low rating, the amount issued was only 70 billion yen, leading the company to look for where there are fewer threat investors.
The Japanese automaker will also factor euro-denominated bonds.
This is the first time Nissan has issued dollar-denominated bonds since forming an alliance with French automaker Renault in 1999.
Nissan plans to factor $1. 5 billion for terms of three and five years and $2. 5 billion for terms of seven and 10 years on September 17. The yield will be 3. 04% for the three-year bond and 4. 81% for the bonus at 10 of the year.
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The automaker is undergoing structural reforms after a drop in functionality due to its strategy beyond expansion. The prices of the reform and effect of the coronavirus have been a massive drag, and the company faces a consolidated loss of 670 billion yen for the fiscal year. 2021.
Nissan raised about 900 billion yen in loans and budget between April and July, and also earned 180 billion yen in loans from the Business Development Bank of Japan, of which 130 billion are guaranteed through the government.
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