Nissan Eyes $7B Funding Amid Cash Crunch, Asset Sales and Debt Plan in Focus

Nissan Motor Co. (OTC:NSANY, TYO:7201) is preparing a major fundraising initiative exceeding 1 trillion yen (around $7 billion) through a mix of debt issuance and asset sales, according to internal documents cited by Bloomberg. The move aims to secure liquidity ahead of a significant debt repayment due next year.

The Japanese automaker plans to issue up to 630 billion yen in bonds and convertible securities. Additionally, it is pursuing a £1 billion ($1.4 billion) syndicated loan supported by UK Export Finance. Nissan is also weighing divestments, including stakes in Renault SA (EPA:RENA) and battery company AESC, as well as the sale of manufacturing plants in Mexico and South Africa. Real estate sales, including its Yokohama headquarters, are also under consideration.

The aggressive strategy comes amid internal projections that suggest Nissan’s cash reserves could be depleted by March 2026 if U.S. tariffs remain in place. Newly appointed CEO Ivan Espinosa warned that the financial outlook is dire, following a 671 billion yen loss in the last fiscal year. Forecasts show potential operating losses reaching 450 billion yen in FY2026.

Although Nissan currently holds 2.2 trillion yen in available credit and cash, its recent downgrade to junk status and weakening operational performance highlight the urgency behind the capital-raising plan. The proposal is still pending board approval.

Shares of Nissan traded 0.6% higher in Tokyo on Wednesday, reflecting cautious investor optimism amid the automaker’s efforts to stabilize its financial position. This development signals a critical juncture for the company as it battles macroeconomic pressures and internal restructuring challenges.