Nichicon to Issue Zero-Coupon Convertible Bonds Worth 22 Billion Yen, Due in 2031
Japanese capacitor manufacturer Nichicon (TYO:6996) plans to issue zero-coupon convertible bonds worth 22 billion yen, due in 2031, according to a Wednesday filing with the Tokyo Exchange.Proceeds will mostly fund capacity expansion and digital transformation investments.About 17 billion yen will be allocated to capacitor business and the Nichicon energy control system technology (NECST) business capital expenditures, including capacity increases for conductive polymer hybrid aluminum electrolytic capacitors, to meet the higher demand in the information and communications equipment sector and the automotive and transportation equipment sector, the filing said.Another 5 billion yen will fund a planned share buyback aimed at mitigating the issuance impact, improving capital efficiency, and improving shareholder returns, it said.Shares of Nichicon fell nearly 5% at market close.
