Nio said it plans to use a portion of the net proceeds from the notes offering to repurchase a portion of the existing debt securities. — Reuters
SYDNEY: Chinese electric vehicle maker Nio Inc says it has raised US$1bil in a two-tranche convertible bond from which it intends to use the proceeds to pay down debt and strengthen its balance sheet.
The company raised US$500mil in a six-year put-four convertible bond and the same amount in a seven-year put-five bond.
The bonds will be senior, unsecured notes. The shorter dated bond has a 3.875% interest rate, while the seven-year bond’s rate is 4.625%, Nio said in a Hong Kong Stock Exchange announcement.
Nio’s Hong Kong shares dropped 12% in morning trade yesterday after the final pricing decision was set.
“The company plans to use a portion of the net proceeds from the notes offering to repurchase a portion of the existing debt securities, and the remainder mainly to further strengthen its balance sheet position as well as for general corporate purposes,” the company said.
Nio posted a net loss of 6.12 billion yuan in the second quarter, versus a loss of 2.75 billion yuan in the corresponding period a year earlier. — Reuters
