Nissan Raises $5.9 Billion from Oversubscribed Bond Offering

Nissan Motor has raised $5.9 billion from a bond offering to finance debt redemption and invest in new technologies such as electrification and software. The transaction is part of the company's broader effort to strengthen its finances and turnaround its business performance under the Re:Nissan restructuring plan.

Nissan Motor has successfully raised $5.9 billion through a bond issuance, aiming to finance debt redemption and invest in new technologies such as electrification and software-defined vehicles. The transaction is a significant component of the company's broader effort to strengthen its financial position and turn around its business performance under the Re:Nissan restructuring plan.

The bond issuance, which included U.S. dollar- and euro-denominated senior unsecured bonds, raised a total of $5.88 billion. Additionally, Nissan sold $150 billion yen ($1.3 billion) in convertible bonds to support its turnaround strategy. The proceeds from the bond issuance will be used for general corporate purposes, including debt repayment, and investments in new products and technologies [5].

Nissan's financial struggles have been well-documented, with the company facing a significant debt burden and a downgrade to "junk" status by all major credit-rating agencies. The automaker has been actively seeking to boost cash flow and refinance its debt. In May, Nissan announced plans to cut its global workforce by around 15% and close seven plants worldwide, aiming to reduce costs by 250 billion yen ($1.9 billion) [3].

The bond issuance comes at a critical time for Nissan, as the company is also dealing with challenges in its electric vehicle (EV) production plans. In July, Nissan announced plans to scale back production of its new LEAF model due to a shortage of rare earth minerals caused by China's export restrictions. The company has also delayed the production of two EVs scheduled for the Canton, Mississippi, plant [3].

Despite these challenges, Nissan remains committed to its growth plans, particularly in Africa. The company's Africa president, Jordi Vila, has reaffirmed Nissan's commitment to growing in Africa, including plans to introduce new SUVs and variants of existing models [4]. The launch of the new Navara Stealth pickup truck in South Africa is a testament to Nissan's continued focus on expanding its presence in the region.

In conclusion, Nissan Motor's bond issuance is a crucial step in its efforts to turn around its financial performance. By securing $5.9 billion in funding, the company aims to address its debt burden and invest in new technologies to drive growth. As Nissan continues to navigate the challenges posed by the global automotive market, its ability to successfully execute its restructuring plan will be key to its future success.

References:
[1] https://www.japantimes.co.jp/business/2025/07/11/companies/nissan-bond-deal/
[2] https://finance.yahoo.com/news/nissan-motor-raises-4-5-040552247.html
[3] https://electrek.co/2025/07/09/nissan-cuts-new-leaf-ev-production-but-thats-not-the-whole-story/
[4] https://www.reuters.com/world/africa/nissan-reaffirms-south-africa-growth-plans-amid-plant-uncertainty-2025-07-10/
[5] https://www.morningstar.com/news/dow-jones/202507109912/nissan-raises-about-59-billion-from-bond-issuance