Nissan Requests Loan Limit of Approximately 500 Billion Yen from Major Japanese Banks Including 日

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Nissan Motor is reportedly seeking to set a loan limit of 500 billion yen (approximately 5.6 trillion won) from Japan's three major banks, including Mizuho Bank, and the Japan Policy Investment Bank, according to a report by Nihon Keizai Shimbun on the 9th. Due to a sharp decline in sales caused by the COVID-19 pandemic, Nissan has suspended operations at its North American plants and is said to have a low cash reserve.

According to the report, Nissan recently requested new loan limits from three major banks?Mizuho Bank, Mitsubishi UFJ Bank, and Sumitomo Mitsui Banking Corporation?as well as the Policy Investment Bank. Nihon Keizai stated that the Policy Investment Bank is expected to provide crisis response loans. Nissan explained this funding plan at a board meeting held on the 7th.

As of the end of December last year, Nissan held deposits of 1.2 trillion yen and securities worth 214.3 billion yen, totaling approximately 1.4 trillion yen in assets. The existing loan limit secured for the automobile business sector alone is about 500 billion yen. However, considering that Toyota Motor holds around 6 trillion yen in cash and liquid assets, Nissan's financial base is relatively weaker.

Nihon Keizai reported that automobile manufacturers are collectively seeking to secure funds amid a global sales slump. Toyota requested a total loan limit of 1 trillion yen from Sumitomo Mitsui Banking Corporation and Mitsubishi UFJ Bank, and also increased its corporate bond issuance limit by an additional 100 billion yen compared to before.

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