Nissan Plans $7 Billion Funding Package, Includes UK-Backed Loan

Japanese automaker Nissan Motor Co. is preparing a major funding initiative worth more than $7 billion as it accelerates its global restructuring plan and seeks to stabilize its financial position. According to reports, the company’s funding strategy includes a syndicated loan backed by the UK government and the potential issuance of debt securities across several markets.

The package could include up to ¥630 billion (roughly $4 billion) in bonds and convertible instruments, targeting both dollar and euro investors. In addition, Nissan is in advanced talks for a £1 billion ($1.35 billion) loan supported by UK Export Finance, reinforcing the company’s strategic footprint in the United Kingdom.

This move comes as part of a wider cost-cutting drive. Earlier this month, Nissan unveiled plans to reduce its global workforce by 15%, consolidate production sites, and consider divesting non-core assets. The company is reportedly evaluating the sale of its manufacturing operations in South Africa and Mexico, and may trim its stakes in joint ventures, including those in Renault and battery maker AESC Group.

The funding plan has yet to receive formal approval from Nissan’s board. However, investor sentiment responded positively to the announcement, with shares briefly rising over 4% before closing with a 0.6% gain on Tuesday.

The UK-backed loan highlights Nissan’s continued commitment to its British operations, particularly the Sunderland manufacturing plant — a cornerstone of the country’s car production sector.

As the global auto industry contends with rising costs, regulatory pressures, and the shift to electric mobility, Nissan’s funding efforts are seen as a critical step in shoring up capital ahead of long-term investment needs.