Abu Dhabi-backed Nio to issue US$1 billion in convertible senior notes to pare debt, boost cash reserves
- Nio to issue two batches of US$500 million notes, convertible to American depositary shares maturing in 2029 and 2030
- While Nio has reported rising sales in the past two months, the EV maker has seen losses widen by 27 per cent in the second quarter
The Shanghai-based carmaker said in filings to the Hong Kong and New York stock exchanges on Tuesday that it would issue two batches of US$500 million notes, convertible to American depositary shares (ADS) maturing in 2029 and 2030.
The fundraising comes three months after Nio received US$740 million from Abu Dhabi government-backed firm CYVN Holdings through a share placement.
“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,” Nio said in the filing.
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The interest rate, initial conversion rate and other terms will be determined at the time of pricing of the notes, Nio said.
