Nissan Motor Co. is exploring a sweeping funding plan that could surpass 1 trillion yen ($7 billion), with options ranging from debt financing to asset disposals, according to documents cited by Bloomberg News.
The beleaguered Japanese automaker, currently ranked third domestically, is said to be preparing to issue up to 630 billion yen in convertible securities and bonds, including high-yield notes in both U.S. dollars and euros.
One key element under consideration is a GBP 1 billion ($1.35 billion) syndicated loan backed by UK Export Finance, which would bolster Nissan’s liquidity as it undertakes a dramatic restructuring.
The company is reportedly also looking at offloading stakes in several key assets—including its long-time alliance partner Renault, battery manufacturer AESC Group, and auto plants in both South Africa and Mexico.
Bloomberg’s sources suggest the funding proposal is still awaiting board approval, with its timeline and final shape yet to be determined. The plan would also include rolling over portions of Nissan’s existing debt.
Earlier this month, Nissan unveiled an aggressive cost-cutting program which includes slashing global headcount by around 15% and trimming its worldwide manufacturing footprint from 17 to 10 plants. Sources told Reuters that this overhaul could see Nissan exit production in South Africa, close two Japanese car plants, and scale back overseas capacity, especially in Mexico.
