Nissan Motor has registered with the Japanese government to issue up to 500 billion yen ($4.7 billion) in bonds within two years
The major Japanese automaker, which registered its first corporate bond issue in four years with the Kanto Local Finance Bureau on Friday, is struggling with decreasing new car sales amid the novel coronavirus pandemic. It has prepared structural reform plans including a steep cut in global production capacity.
While details of the planned bond flotation, including the amount and date of issuance, have yet to be worked out, Nissan is considering using the fundraising to finance capital spending and debt repayments. S&P Global Rating has assigned a long-term rating of BBB to the Yokohama-headquartered company.
In August 2019, Nissan registered a bond issue of 250 billion yen. It planned to float the amount the following year but decided to delay the issuance after the exposure of improper overpayments to former President and CEO Hiroto Saikawa.
