Tokyo: Nissan Motor Co, Japan's third- largest carmaker, raised 100 billion yen (Dh3.9 billion) to repay debt in its first bond sale since the Renault-Nissan auto alliance agreed on a partnership with Daimler AG on April 7.
Nissan priced 50 billion yen of five-year 0.813 per cent bonds to yield 32 basis points more than similar-maturity Japanese government bonds, according to data compiled by Bloomberg. The carmaker also sold 30 billion yen of seven-year, 1.17 per cent bonds at a 37 basis-point spread, and 20 billion yen in 10-year, 1.744 per cent notes at a 42 basis point spread, the data show.
Renault-Nissan unveiled the linkup with Daimler to share development costs, engines and technologies for small cars, luxury and commercial vehicles, after Nissan announced a return to profit in the year ending March 31.
Faster recovery
The company scrapped an earlier loss forecast as government incentives boosted demand for vehicles in China and Japan.
"Investors liked Nissan's performance recovering faster than expected," said Norio Endo, a credit analyst at Nomura Securities Co.
"The tie-up will be effective in the long-run in cost cuts and environmental technologies."
Nissan doubled the size of the sale because of "huge demand from investors," said Yoshie Yamasaki, a spokeswoman at Nissan. The money raised will be used to repay part of the 128 billion yen of bonds maturing in June, Yamasaki said.
