Nissan Motor Co., Japan’s third-largest automaker, is reportedly planning to raise $7 billion through debt financing and asset sales, including a syndicated loan guaranteed by the British government, according to Bloomberg News on Wednesday. The company is trying to settle $5.6 billion in debt due by mid-next year and is considering options to raise funds, including selling part of its 15% stake in Renault SA and divesting its shares in battery manufacturer AESC Group Ltd.
Nissan has been grappling with financial challenges in recent years, worsened by declining sales in crucial markets like the United States and China, along with inefficiencies in operations. The company posted a record net loss of 670.9 billion yen ($4.5 billion) for the financial year ending in March 2025 and opted not to provide an operating profit forecast for the fiscal year concluding in March 2026.
To support its fundraising measures, Nissan plans to issue convertible securities and bonds amounting to 630 billion yen, comprising high-yield euro and US dollar notes. Additionally, the company is seeking a £1 billion syndicated loan backed by the UK government’s Export Finance, which offers financial assistance to British exporters.
Nissan’s fundraising efforts are part of its larger recovery strategy, known as ‘Re:Nissan,’ unveiled in early 2025. The company is working to streamline operations and establish a more adaptable business model in response to shifting market conditions. As part of the initiative, Nissan plans to reduce expenses by shutting down 7 of its 17 production sites and eliminating 20,000 jobs worldwide, according to Reuters.
The UK’s financial backing highlights Nissan’s crucial role in the British economy, especially with its Sunderland manufacturing plant, which employs thousands of workers.
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