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Nissan Motor to issue $8 billion in dollar-denominated debt

Japanese Nissan Motor will issue $8 billion in dollar-denominated debt and is thinking about 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 French automaker Renault SA in 1999, a Nissan spokesperson said.

It comes as investors have expressed deepening concern about Nissan, which has warned of a record $4.5 billion loss in 2020 as the coronavirus crisis hampers its turnaround efforts.

Separately, IFR reported Nissan would sell about 2 billion euros ($2.37 billion) in euro-denominated debt. A Nissan representative said an issuance was under discussion, without confirming the number.

According to IFR, 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%.

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 slash 300 billion yen ($2.83 billion) from annual fixed costs and become a smaller, more efficient automaker. The automaker is attempting to recover from a rapid expansion that has left it with dismal margins and an ageing portfolio.

Its business has also been affected by the arrest of long-time leader Carlos Ghosn, who was arrested in 2018 over the allegations of financial misconduct. Ghosn has rejected the allegations.

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