Honda Motor (TYO:7267) is exploring raising over 400 billion yen through a euro-denominated bond sale to fund compensation payments to parts suppliers following its revised electric vehicle strategy, Nikkei Asia reported Tuesday.
The Japan-based automaker plans to issue three, six, and 10-year bonds and is assessing institutional investor demand before setting final terms and interest rates.
The company expects to incur about 500 billion yen in compensation payments to parts suppliers in the fiscal year ending March 2027. The proceeds are also expected to be used to support investment in hybrid vehicles.
Honda Motor did not immediately respond to a request for comment from.
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