Nissan to sell ¥150 billion of convertible bonds to fund turnaround
The proceeds will be used for investment in new products and technologies such as electrification and software-defined vehicles, the Japanese carmaker said in a statement Monday.
The company, which is facing a a huge loan repayment wall next year, is seeking to raise more than ¥1 trillion from debt and asset sales to keep operations on track, it was reported in May.
The stock fell the most in almost three months after the convertible bond sale was announced. The shares fell as much as 5.2% in Tokyo, before paring some of the losses to be down around 3% at 1:04 p.m. local time. The stock has tumbled about 40% in the past 12 months.
Nissan has sufficient capital of about ¥2.2 trillion in cash on hand and credit to last the next 12 to 18 months, Espinosa said in May.
The new CEO has announced plans to eliminate 20,000 jobs and close seven of Nissan's 17 plants by March 2028 after the company reported a ¥671 billion net loss for most recent fiscal year.
The measures follow the collapse of talks earlier this year to join forces with Honda. Those discussions ended in part due to disagreements about Nissan's willingness to make deeper cuts to production and personnel.
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