1987 - Year of the shrinking market? At the same time, the company changed the composition of its liabilities by raising cheaper funds through issues of domestic and international debentures. Its outstanding debt fell below 1 trillion ($6 billion) for the first time for five years. It was 940 billion ($5.8 billion) at the end of March 1986.
In August 1986, MHI issued 100 billion ($614 million) of 15-year convertible debentures. The company's executive director, Yu Tashiro, said: "For the moment, MHI has no specific demand for funds, but the company is raising long-term stable funds in the period of easy credit.'
Apart from domestic convertible debentures, MHI issued DM250 million in convertible debentures and $250 million in warrant bonds on the Euromarkets in February. Both were partly allocated for repayments.
In the first half of the current financial year, MHI reduced its outstanding debt by 40 billion ($245 million). For the full year, the reduction should be 100 billion ($614 million).
MHI plans capital spending of only 63 billion ($386 million) for the current year. (Last year it was 75 billion.) This leaves it with a problem--what to do with this year's cash flow, estimated at 300 billion ($1.8