JAPAN, TOKYO, 28th March 2025: Nissan, the third-biggest carmaker in Japan, is trying to raise $7 billion in debt to pay off $5.6 billion in debt that is due by mid-next year. Additionally, the carmaker is considering selling a portion of its 15% stake in Renault SA and selling off its stock in battery manufacturer AESC Group Ltd.
With a reported net loss of $4.64 billion, the Japanese automaker is in serious financial trouble. To navigate its difficult situation, Nissan has firmed up plans to raise the necessary funds. According to Bloomberg News, the company expects to incur an operating loss of up to $3.11 billion in fiscal year 2026 and intends to use a combination of asset and debt sales.
As part of its fundraising efforts, Nissan plans to issue convertible securities and bonds totalling 630 billion yen ($1.4 billion), which will be made up of high-yielding euro and US dollar notes. Additionally, the company is pursuing a £1 billion ($1.35 billion) syndicated loan guaranteed by the UK government’s Export Finance, which provides loans and insurance to British exporters. In addition, Nissan intends to issue high-yield bonds and convertible securities worth $4.36 billion in both euros and US dollars.
The Bloomberg report claims that Nissan is also thinking about selling off a portion of its holdings in the battery manufacturer AESC Group and the French automaker Renault, as well as plants in Mexico and South Africa.
The company has not formally responded to this news, but it has announced plans to reduce its production facilities from 17 to 10 worldwide and lay off about 15% of its workforce.
Nissan does have some options in spite of these obstacles. With $15.22 billion in cash and unused credit lines, the automaker anticipates being able to continue operations for the next 12 to 18 months.
Nissan has additionally pledged to invest $2.7 billion to increase the production of electric vehicles (EVs) at its Sunderland facility in the United Kingdom, which is the nation’s biggest centre for auto manufacturing.
Nissan hopes to overcome its looming liquidity crisis with these fundraising efforts, as internal projections suggest that by March 2026, it may have almost no excess cash.
