Industry Chinese EV maker Nio raises $1bn in convertible bond deal By Reuters September 20, 2023 Reuters/Annegret Hilse EV maker Nio raised $500 million in a six-year put-four convertible bond and the same amount in a seven-year put-five bond Chinese electric vehicle maker Nio Inc said on Wednesday it had raised $1 billion 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 $500 million 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 percent interest rate, while the seven-year bond’s rate is 4.625 percent, Nio said in a Hong Kong Stock Exchange announcement. Saudi company invests in US battery maker Pure Lithium Exeed joins Chinese push to corner UAE EV market Dubai company to invest $500m in Chinese EV maker Nio’s Hong Kong shares dropped 12 percent in morning trade on Wednesday 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 said in late August it planned to launch its first self-development mobile telephone later this month to improve the appeal of its cars with better software and connectivity. Nio posted a net loss of 6.12 billion yuan ($839.51 million) in the second quarter, versus a loss of 2.75 billion yuan in the corresponding period a year earlier.
