Honda eyes $2.5bn in eurobonds to fund payments to parts makers

Key facts

• Honda Motor is planning to issue euro-denominated bonds exceeding 400 billion yen ($2.47 billion).
• The funds will be used to compensate parts makers following a revised EV strategy.
• Investments in hybrid vehicles are also planned.
• Honda recorded its first net loss in the fiscal year ending March.

Honda Motor is exploring the issuance of euro-denominated bonds, expected to amount to over 400 billion yen ($2.47 billion). The funds are likely to be allocated towards compensating parts makers, a move necessitated by the automaker's revised electric vehicle strategy. Additionally, the proceeds will support investments in hybrid vehicles. This financial maneuver follows Honda's first-ever net loss recorded in the fiscal year ending March, a result of abandoning an EV-centric approach.