Japanese automaker Nissan Motor Co. will issue convertible bonds worth 150 billion yen ($1.04 billion) to raise funds for its business reorganization program. This is reported by Reuters.
The funds raised will be directed toward investments in new products and technologies, the company stated in a press release.
According to Reuters, Nissan is also preparing to issue bonds in dollars and euros worth $4 billion to raise funds for debt repayment. Thus, the company intends to sell 5-, 7-, and 10-year bonds in dollars, as well as 4- and 8-year bonds in euros.
In May, the media reported that the automaker, which expects large debt payments next year, is considering raising more than 1 trillion yen ($6.9 billion) through bond offerings and asset sales.
Nissan Chief Executive Officer Ivan Espinoza, who took over in April, had previously announced plans to reduce its workforce by 15% and close seven plants. The measures are expected to save 500 billion yen ($3.4 billion) in annual costs over two years.
Nissan shares fell 4.9% in after-hours trading on Monday. They have fallen 29.8% so far this year.