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8411 - Mizuho Financial Inc News Story

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Sector
Financials
Size
Large Cap
Market Cap £24.38bn
Enterprise Value £30.23bn
Revenue £19.93bn
Position in Universe 31st / 3861

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

Fri 29th May, 2020 9:56am
TOKYO, May 29 (Reuters) - 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 billon 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.
    Nissan also announced a four-year recovery plan on Thursday.
Japan's No. 2 automaker pledged to slice 300 billion yen in from
annual fixed costs and become a smaller, more efficient company
after the pandemic exacerbated a slide in profitability that
culminated in its first annual loss in 11 years.  urn:newsml:reuters.com:*:nL4N2DA1L5
    Chief Executive Makoto Uchida said the company had ample
cash, untapped credit lines and fresh funding to ride out a
severe sales slump caused by the coronavirus, but warned the
biggest challenge was to improve the company's cash flow. 
    Nissan is grappling with a negative free cash flow of 641
billion yen as of the year ended March 31, which the company
expects to turn positive in the second half of its financial
year.
    Still, Uchida and Chief Financial Officer Stephen Ma
acknowledged that more funding might be needed if the pandemic
continues to weigh on sales in the coming months.

 (Reporting by Takashi Umekawa and Naomi Tajitsu; Editing by
Pravin Char)
 ((naomi.tajitsu@thomsonreuters.com; +81364411078; Reuters
Messaging: naomi.tajitsu.thomsonreuters.com@reuters.net))
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