Nissan Shouldn't Have Sold Bonds Amid Ghosn Probe, Investors Say
- Company priced yen bond in October, issuance delayed from July
- “Disingenuous” to sell bonds in this situation: Asahi Life
This article is for subscribers only.
Nissan Motor Co. was already investigating Chairman Carlos Ghosn when its auto-financing arm pushed ahead in selling 60 billion yen ($532 million) of bonds last month, a move now criticized by buyers of the debt.
Wholly owned subsidiary Nissan Financial Services Co. priced three- and five-year notes on Oct. 12, a sale which had been delayed from July. On Nov. 19, Nissan chief executive officer Hiroto Saikawa announced that the company had been conducting an internal investigation lasting “several months.” Ghosn was arrested the same day in Tokyo, causing the cost of credit protection to spike to the highest in 2 1/2 years.