Nidec scandal sends bonds to bottom in test for new CEO
The precision motor manufacturer's yen bond due in mid-2032 has slumped to ¥77.7, the lowest among more than 3,000 local corporate notes.
Nidec, once a Kyoto startup and now the world's largest manufacturer of precision motors, has fallen to the bottom of the yen debt market, leaving its new CEO with the task of regaining investor trust. The company's yen bond due in mid-2032 has plummeted to ¥77.7, the lowest among over 3,000 local corporate notes maturing by then, according to Bloomberg data.
This decline occurred following Nidec's disclosure of a ¥564.6 billion ($3.6 billion) net loss, primarily due to writedowns, in the year ending March 31. Furthermore, Nidec's auditor, PwC Japan, refused to certify the company's financial statements, adding to the ongoing accounting scandal. In response to inquiries, a Nidec spokesperson stated that the company will ensure sufficient funds for bond repayments at maturity, utilizing cash flow from its business operations.
However, the company declined to comment on the bond's market price, acknowledging that it is influenced by supply and demand, as well as investor sentiment.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
