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, reports Reuters. 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% 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 on Wednesday after the final pricing decision was set.
