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Nissan to issue ¥100B bond as investor confidence returns

Nissan Motor Co. Ltd. will soon return to Japan's bond market with a ¥100 billion, or $939 million, offering to fund new tech development as investor confidence returns, the Nikkei Asian Review reported Aug. 23, citing a local filing.

The Japanese automaker reportedly filed for shelf registration in Tokyo on Aug. 20 to issue a total of ¥250 billion of bonds over the next two years, including the upcoming ¥100 billion offering. The offering will be Nissan's first foray into the domestic bond market since 2016 when it floated a ¥125 billion offering, the newspaper said.

The arrest of ousted chairman Carlos Ghosn over allegations of financial misconduct in November 2018 led to a collapse of investor confidence. The company then underwent a corporate reform, which is believed to have restored some investor confidence.

Reuters' International Financing Review reported the same day that Nissan tapped Mitsubishi UFJ Morgan Stanley, Mizuho, Merrill Lynch and Goldman Sachs for a four-tranche bond offering in maturities of three, five, seven and 10 years with pricing expected to be as early as September.

Nissan plans to use part of the proceeds of the offering to fund research and development into autonomous vehicles, hybrids and various next-generation fields, the Nikkei said, with the remainder used for equipment upgrades and the redemption of past debt.

As of Aug. 22, US$1 was equivalent to ¥106.48.