Nissan to issue US$8b in US dollar-denominated debt

[TOKYO] Japan's Nissan Motor will issue US$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, a Nissan representative said.

It comes as investors have expressed deepening concern about Nissan, which has warned of a record US$4.5 billion loss this year as the pandemic hampers its turnaround efforts.

Separately, IFR reported Nissan would sell some two billion euros (S$3.24 billion) in euro-denominated debt. A Nissan spokesperson said an issuance was under discussion, without confirming the figure.

The company will sell a US$1.5 billion, three-year bond with a coupon of 3.043 per cent, and a US$1.5 billion, five-year bond with a coupon of 3.522 per cent, according to IFR.

Its US$2.5 billion, seven-year bond carries a coupon of 4.345 per cent and another US$2.5 billion bond, a 10-year, carries a 4.81 per cent coupon, IFR said.

Nissan had pledged to cut 300 billion yen (S$3.86 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.

REUTERS