Honda Motor Co. plans to issue over ¥400 billion ($2.47 billion) in euro-denominated bonds. The company will use the proceeds to compensate auto parts suppliers.
The capital will also fund hybrid vehicle investments following a major strategy revision. Honda recently scrapped its ambitious electric vehicle sales targets.
The automaker posted its first annual loss in decades. Substantial restructuring costs within the EV business drove the financial deficit.
Honda is now prioritizing hybrid models as a bridge technology. The bonds will feature maturities of three, six, and ten years.