Corporate bonds are basically debt securities issued by companies to raise capital. Investors who purchase these bonds are essentially lending money to the company, and in return, the company promises to repay the principal amount on a specified date and make regular interest payments until then.

The total funds raised by Nissan amounts to around 860-billion yen consisting of approximately 660 billion yen for the US dollar-denominated and euro-denominated bonds combined, and 200 billion yen in convertible bonds.

Nissan says its bond offering was oversubscribed, reflecting the confidence of investors in the Re:Nissan recovery plan. The funds were raised in the longer tenors (4-year to 10-year tenors).

The Japanese carmaker intends to use the net proceeds raised through the US dollar and euro offerings for general corporate purposes and upcoming bond maturities including those in fiscal year 2025. The net proceeds from the convertible bonds are intended to be used by fiscal year 2030 for investments in new products and technologies such as electrification and software-defined-vehicles.

After the issuance of these bonds, the company will continue to strengthen its financing capabilities and maintain strong liquidity in its automotive business to support its Re:Nissan revival plan.