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Nissan is seeking a UK government-backed loan to support its Sunderland plant as part of plans to raise close to ยฅ1tn ($7bn) from asset sales and debt markets, according to people familiar with the matter.
The struggling Japanese carmaker is trying to sell property and tap debt markets to address large loan repayments due next year. The fundraising includes a ยฃ1bn syndicated loan guaranteed by UK Export Finance.
Under the provisional plans, Nissan could also issue more than ยฅ600bn in convertible bonds and securities, and raise money from sales of assets and factories, including a sale-and-leaseback of its headquarters in Yokohama.
The fundraising target could change significantly depending on factors such as vehicle sales and President Donald Trumpโs tariffs on car imports to the US, the people added.
One of the people said Nissanโs priority was to improve its balance sheet before the company raised money from capital markets.
Nissan declined to comment, and UKEF did not immediately respond to a request for comment. Bloomberg first reported details of the plans.
Ivan Espinosa, who became chief executive in April, has the mammoth task of delivering a restructuring plan that includes cutting 20,000 jobs, shutting down seven of its 17 factories and speeding up vehicle development.
Espinosa was pushed into deepening the turnaround plan after shortlived discussions to merge with Japanese peer Honda collapsed.
The Sunderland plant appears to have been spared from the factory closures, and Nissan vowed in 2023 to increase electric car output there through a ยฃ1.12bn investment.
The ยฃ1bn syndicated loan guarantee under consideration by UKEF is separate from a ยฃ1bn UK government-backed funding package announced this month to support a new battery factory in Sunderland for Nissan supplier AESC, one of the people said.
Nissan reported a net loss of ยฅ671bn in the year ending in March, its largest since 1999 when it was rescued from bankruptcy by Renault.
It recorded negative free cash flow of ยฅ243bn for its automotive business, which is expected to grow to ยฅ550bn in the first quarter, and is targeting positive free cash flow by its 2026 financial year. It had ยฅ2.2tn of cash and cash equivalents.
โThey are climbing K2,โ said Christopher Richter, analyst at CLSA, referring to one of the worldโs deadliest mountains. โThis year is going to be an ugly year.โ
During its earnings presentation this month, the company said it planned to refinance between ยฅ400bn and ยฅ600bn of the ยฅ700bn of debt maturing in the current financial year ending in March 2026.
On Tuesday, a company filing showed that four former top executives including Makoto Uchida, who led the group for about five years, received ยฅ646mn in severance pay.
