Nissan seeks $4.6b in loans as sales drop

Bloomberg

Nissan Motor Co. has requested loans totaling $4.6 billion from lenders including Japan’s three megabanks as the carmaker suffers from plunging sales due to the coronavirus, according to bankers familiar with the matter.
The automaker is seeking financing from Mizuho Financial Group Inc., Sumitomo Financial Group Inc., Mitsubishi UFJ Financial Group Inc. and the state-backed Development Bank of Japan, the bankers said, asking not to be identified.
The talks are still at an early stage and details, including how much each bank will take on, have yet to be discussed, the people said. Nikkei earlier reported that Nissan was seeking a credit line from the banks.
Carmakers are seeing a steep drop in sales and laying off workers as they halt production around the world, with their credit ratings being cut, because of the intensifying virus outbreak.
Toyota Motor Corp. has asked for a 1 trillion yen credit line from two major Japanese banks to secure its funding.
“While we have enough cash for our current business operations, we are looking into various options in case crises arise in the future.” Azusa Momose, a Nissan spokeswoman, said.
Spokespeople for MUFG and Mizuho declined to comment. Representatives for DBJ and Sumitomo Mitsui weren’t immediately available for comment.
Although Nissan has struggled to revamp its performance following the arrest of Carlos Ghosn, COO Ashwani Gupta said in an interview earlier this week that the company plans to utilise its existing assets
instead of selling them.