Nissan Motor plans to raise about 750 billion yen, or around 5.1 billion dollars, by issuing new corporate bonds to cover the costs of repaying outstanding bonds and developing electric vehicles.
The struggling Japanese automaker posted a massive net loss of more than 670 billion yen, or about 4.6 billion dollars, in the fiscal year that ended in March.
The company needs to finance the redemption of bonds maturing this fiscal year, for a total of about 3.8 billion dollars.
Nissan announced a plan on Monday to raise about 1 billion dollars by issuing convertible bonds. It also plans to sell straight bonds worth about 4.1 billion dollars.
The funds from new bond sales will be invested in growth areas such as development of electric vehicles and next-generation cars that can be upgraded through software updates, and for redemption of existing bonds.
Nissan earlier announced that it will cut its group-wide payroll by 20,000 workers and close seven factories in and outside Japan.
Analysts are closely watching whether Nissan can implement an effective growth strategy to rebuild the company.