Nissan Raises $4.52 Billion via Bond Sale to Refinance Debt Amid Liquidity Strain

Japan’s Nissan Motor Co. (OTC:NSANY) has raised $4.52 billion through senior unsecured bonds in U.S. dollar and euro denominations, aiming to refinance existing debt as it navigates liquidity challenges. The bond issuance includes $3 billion in three U.S. dollar tranches with maturities of five, seven, and ten years, and €1.3 billion ($1.52 billion) in euro-denominated bonds with four- and eight-year terms, according to a term sheet reviewed by Reuters.

The five-year dollar bonds were priced at 355 basis points above U.S. Treasuries, the seven-year at 360 bps, and the ten-year at 376 bps. Coupons were set at 7.5%, 7.75%, and 8.125% respectively, reflecting the higher risk premium investors demand amid the automaker's financial pressures.

Citi, Bank of America, and HSBC served as joint bookrunners for the offering.

This move follows a recent Reuters report that Nissan requested payment delays from some suppliers to ease short-term cash flow constraints. The automaker is facing approximately 700 billion yen ($4.76 billion) in maturing debt this fiscal year and has been downgraded to junk status by all three major credit rating agencies.

The capital raise underscores Nissan’s urgent need to manage liquidity and reassure investors amid mounting debt obligations and operational challenges. With this funding round, the company aims to bolster its financial resilience during a time of increased scrutiny over its fiscal health.

Nissan’s bond offering highlights a growing trend among legacy automakers turning to capital markets to manage refinancing needs while navigating a rapidly evolving auto industry and tightening credit conditions.