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[Alpha Biz= Paul Lee] According to a Bloomberg report dated May 28 (local time), Nissan Motor Co. is planning to raise ¥1 trillion (approximately USD 6.3 billion) through a combination of asset sales and debt issuance to address mounting financial pressure and upcoming debt maturities.



Internal documents obtained by Bloomberg reveal the automaker’s intention to issue up to ¥630 billion in convertible and conventional bonds, along with securing a £1 billion (approx. ¥185 billion) syndicated loan backed by the UK Export Finance agency.



As part of its fundraising strategy, Nissan is reportedly preparing to sell stakes in Renault and battery manufacturer AESC, in addition to divesting production facilities in South Africa and Mexico. The company is also pursuing sale-and-leaseback deals for its headquarters in Yokohama, Japan, and various U.S. real estate holdings.



The plan was presented earlier this month to Nissan’s board of directors by new CEO Ivan Espinosa, with some actions targeted for implementation by the end of June. However, Bloomberg notes that the board has yet to formally approve the proposal.



Nissan’s internal projections suggest that free cash flow could fall to nearly zero by the end of March 2026, assuming no further capital infusions and unchanged U.S. auto tariffs. The automaker faces $5.6 billion in debt maturities next year — its highest level since 1996.



In a recent interview with Bloomberg TV, CEO Espinosa said Nissan maintains a liquidity buffer of approximately ¥2.2 trillion, consisting of cash and available credit lines, describing the company as being on a “solid footing” from a liquidity perspective.



Despite the financial pressure, Nissan has not issued a profit forecast for this year, citing global tariff uncertainty and unpredictable market conditions. The company projects annual revenue of ¥12.5 trillion.



To streamline operations, Nissan plans to close 7 of its 17 global factories and reduce headcount by 20,000 employees by March 2028. These moves follow the collapse of merger talks with Honda earlier this year.



However, recent trade agreements between the U.S. and the U.K. may ease some pressure. Nissan’s Sunderland plant, with an annual capacity of 500,000 vehicles, stands to benefit from reduced tariffs on exports to the U.S. — a significant relief given Washington's current 25% import duty on automobiles.



Bloomberg concluded that high U.S. tariffs present a serious challenge for all Japanese carmakers, but particularly for Nissan, whose financial position remains fragile.

 

 

 

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