By Scott Murdoch
SYDNEY (Reuters) -Chinese language electrical automobile maker Nio Inc stated on Wednesday it had raised $1 billion in a two-tranche convertible bond from which it intends to make use of the proceeds to pay down debt and strengthen its steadiness sheet.
The corporate raised $500 million in a six-year put-four convertible bond and the identical quantity in a seven-year put-five bond.
The bonds shall be senior, unsecured notes. The shorter dated bond has a 3.875% rate of interest, whereas the seven-year bond’s charge is 4.625%, Nio stated in a Hong Kong Inventory Change announcement.
Nio’s Hong Kong shares dropped 12% in morning commerce on Wednesday after the ultimate pricing resolution was set.
“The corporate plans to make use of a portion of the web proceeds from the notes providing to repurchase a portion of the prevailing debt securities … and the rest primarily to additional strengthen its steadiness sheet place in addition to for basic company functions,” the corporate stated.
Nio stated in late August it deliberate to launch its first self-development cell phone later this month to enhance the enchantment of its automobiles with higher software program and connectivity.
Nio posted a web lack of 6.12 billion yuan ($839.51 million) within the second quarter, versus a lack of 2.75 billion yuan within the corresponding interval a 12 months earlier.
(Reporting by Scott Murdoch in Sydney; Modifying by Michael Perry and Jacqueline Wong)
