TOKYO (Reuters) – The Japanese authorities has assured nearly a 3rd of the 7l3 billion yen ($6.65 billion) in loans Nissan Motor Co (7201.T) has secured from its fundamental lenders to climate the COVID-19 pandemic, in keeping with three folks with information of the plans.
FILE PHOTO: Nissan Motor’s emblem is pictured at its headquarters in Yokohama, Japan February 13, 2020. REUTERS/Kim Kyung-Hoon
The automaker, looking for to return to profitability and cease bleeding cash, has secured 350 billion yen from its largest lender, Mizuho Monetary Group (8411.T), of which 200 billion is backed by the state, the sources advised Reuters on Friday.
Amongst different lenders, the Improvement Bank of Japan will loan 180 billion yen, whereas Mitsubishi UFJ Monetary Group (8306.T) will lend 120 billion yen, the folks stated on situation of anonymity as the data just isn’t public.
Mitsui Sumitomo will lend 50 billon yen, together with some extra U.S. dollar-denominated funding, they added.
Nissan introduced the overall funding quantity on Thursday however didn’t title the lenders.
All 4 banks declined to touch upon the funding breakdown. Solely the Mizuho loan is partly backed by the federal government, the sources stated.
Nissan additionally introduced a four-year restoration plan on Thursday. Japan’s No. 2 automaker pledged to slice 300 billion yen in from annual fastened prices and grow to be a smaller, extra environment friendly firm after the pandemic exacerbated a slide in profitability that culminated in its first annual loss in 11 years.
Chief Govt Makoto Uchida stated the corporate had ample cash, untapped credit score strains and contemporary funding to journey out a extreme gross sales droop attributable to the coronavirus, however warned the most important problem was to enhance the corporate’s cash move.
Nissan is grappling with a adverse free cash move of 641 billion yen as of the yr ended March 31, which the corporate expects to show optimistic within the second half of its monetary yr.
Nonetheless, Uchida and Chief Monetary Officer Stephen Ma acknowledged that extra funding could be wanted if the pandemic continues to weigh on gross sales within the coming months.
Reporting by Takashi Umekawa and Naomi Tajitsu; Enhancing by Pravin Char