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Japan backs nearly a third of $6.6 billion loans to Nissan: sources

REUTERS/Kim Kyung-Hoon

The Japanese government has guaranteed almost a third of the 7l3 billion yen ($6.65 billion) in loans Nissan Motor Co (7201.T) has secured from its main lenders to weather the COVID-19 pandemic, according to three people with knowledge of the plans.

The automaker, seeking to return to profitability and stop bleeding cash, has secured 350 billion yen from its biggest lender, Mizuho Financial Group (8411.T), of which 200 billion is backed by the state, the sources told Reuters on Friday.

Among other lenders, the Development Bank of Japan will loan 180 billion yen, while Mitsubishi UFJ Financial Group (8306.T) will lend 120 billion yen, the people said on condition of anonymity as the information is not public.

Mitsui Sumitomo will lend 50 billion yen, along with some additional U.S. dollar-denominated funding, they added.

Nissan announced the total funding amount on Thursday but did not name the lenders.

All four banks declined to comment on the funding breakdown. Only the Mizuho loan is partly backed by the government, the sources said.

29 May 2020

News Source Reuters

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