Nissan plans $7 billion funding, including loan backed by UK government, Bloomberg News says

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Nissan plans $7 billion funding, including loan backed by *** government, Bloomberg News says

TOKYO (Reuters) -Japan’s struggling Nissan is considering raising more than 1 trillion yen ($7 billion) from debt and asset sales which would include a syndicated loan guaranteed by the *** government, Bloomberg News said on Wednesday.

The country’s third-biggest automaker plans to issue as much as 630 billion yen worth of convertible securities and bonds, including high-yielding U.S. dollar and euro notes, Bloomberg News said, citing documents it had seen.

Nissan is also considering taking out a 1 billion pound ($1.35 billion) syndicated loan guaranteed by *** Export Finance, the report said.

The report said Nissan is also looking at selling part of the stakes it holds in French automaker and long-standing alliance partner Renault and in battery maker AESC Group, as well as plants in South Africa and Mexico.

A representative for Nissan said the company does not comment on speculation, while *** Export Finance did not respond to a request for comment.

Bloomberg News cited sources as saying that Nissan’s board did not appear to have approved the funding proposal yet, leaving it unclear whether it would happen.

The proposal was also slated to include the rollover of some debt, the report said.

Earlier this month, the company presented a sweeping cost-cutting plan under which it plans to reduce its workforce by around 15% and cut car plants to 10 from 17 globally.

Sources told Reuters this month that Nissan is considering plans to shut two car assembly plants in Japan and overseas factories, including in Mexico, and stop production in South Africa as part of its cost-cutting plan.

Nissan’s shares rose more than 4% following the report but they gave up most of those gains and were last trading up 0.5%.

($1 = 144.5700 yen)

($1 = 0.7421 pounds)

(Reporting by Tokyo Newsroom; Editing by Muralikumar Anantharaman and Edwina Gibbs)

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