Nissan plans $7bn fundraising with British government backing

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Nissan seeks to obtain a government -backed loan in the United Kingdom to support its Sunderland Factory as part of plans to raise approximately $ 1 billion (7 billion dollars) of asset sales markets and debt, according to the people familiar with the matter.

The stalled Japanese car maker tries to sell property and benefit from debt markets to address the payment of large loans due next year. The collection of donations includes a sterling steroid loan guaranteed by financing export in the United Kingdom.

Under temporary plans, Nissan can also issue more than 600 billion yen in convertible bonds and securities, collect funds from assets and factories, including the sale and creation of its headquarters in Yokohama.

People added that the goal of collecting donations can change significantly depending on factors such as vehicle sales and definitions committed by president Donald Trump on car imports to the United States.

A person said that Nissan’s priority is to improve its public budget before the company collects money from capital markets.

Nissan refused to comment, and UKF did not immediately respond to a request for comment. Bloomberg first reported the details of the plans.

Evan Espinoza, who became the CEO of April, has a huge mission of providing a restructuring plan that includes reducing 20,000 jobs, closing seven of 17 factories and developing a vehicle.

Espinoza was pushed to deepen the transformation plan after short discussions of merged with Japanese peers Honda collapsed.

The Sunderland factory appears to have been rescued from the closure of the factory, and in 2023, Nissan pledged to increase the production of the electric car there through an investment of 1.12 billion pounds.

One of the persons said that the guarantee of joint loans of 1 billion pounds in view is separate from a billion -pounds financing package in the UK, which was announced this month to support a new battery factory in Sunderland for the Nissan AESC resource.

Nissan reported a net loss of 671 billion yen per year in March, the largest since 1999 when she was rescued from Renault’s bankruptcy.

The negative free cash flow of 243 billion yen has recorded its car business, which is expected to grow to 550 billion yen in the first quarter, and targets a positive free cash flow by its fiscal year 2026. He had ¥ 2.2tn of cash and monetary rewards.

“They are climbing K2,” said Christopher Richter, an analyst at CLSA, referring to one of the bloody mountains of the world in the world. “This year will be an ugly year.”

During its profits offered this month, the company said it intends to refinance between 400 billion and 600 billion yen from 700 billion, which is in the current fiscal year ending in March 2026.

On Tuesday, one of the company’s file showed that four former senior executives including Makoto Uchida, who led the group for about five years, received 646 million yen in wages.