Chinese language electrical automotive maker Nio raised $1 billion in a convertible bond deal
Written by Scott Murdoch
SYDNEY (Reuters) – Chinese language electrical automotive maker Nio mentioned on Wednesday it had raised $1 billion in two-tranche convertible bonds and intends to make use of the proceeds from it to pay down debt and strengthen its stability sheet.
The corporate raised $500 million in six-year convertible notes and the identical quantity in seven-year notes.
The bonds might be senior, unsecured bonds. The shorter-term bonds have an rate of interest of three.875%, whereas the seven-year bond has a fee of 4.625%, Nio mentioned in an announcement on the Hong Kong Inventory Change.
“The Firm plans to make use of a portion of the web proceeds from the notes provided to repurchase a portion of its present debt securities…and the rest primarily to strengthen its stability sheet place in addition to for common company functions,” the corporate mentioned. He mentioned.
Nio mentioned in late August that it plans to launch its first self-developed cell phone later this month to enhance the enchantment of its vehicles with higher software program and connectivity.
Nio recorded a web lack of 6.12 billion yuan ($839.51 million) within the second quarter, in comparison with a lack of 2.75 billion yuan within the corresponding interval final 12 months.
(Reporting by Scott Murdoch in Sydney; Modifying by Michael Perry)
