(Yicai Global) March 6 -- Chinese electric vehicle maker Nio finished its USD235 million convertible bond financing, the firm announced yesterday. This is Nio's third convertible bond financing over the past month and the firm has raised USD435 million this year.
The zero-interest notes will mature on March 5, and their holders may convert all or part of their principal into Class A ordinary shares or American depositary shares from Sept. 5 for USD3.50 per ADS.
The company's stock [NYSE:NIO] opened down around 5 percent at opening yesterday and closed still under water by 3.88 percent at USD3.72.
"Nio is under financial strain, and the novel coronavirus pneumonia, a black swan event, has posed great challenges to the firm," said Qin Lihong, the company's co-founder and president, adding, "The two financing rounds are to ensure Nio can survive the epidemic," various media reported.
The firm finished two other USD200 million funding rounds last month from investment funds.
USD200 million will replenish the company's short-term cash flow to keep it afloat short-term.
Nio penned an agreement with Hefei in China's eastern Anhui province to relocate its Chinese headquarters there, the firm announced on Feb. 25. The company will build research and development, sales, and production bases in the provincial capital to set up a Hefei-centric Chinese headquarters operating system by raising CNY10 billion (USD1.4 billion), per their preliminary agreement.
Formed in November 2014, Shanghai-based Nio is a pioneer in China's premium electric vehicle market. It designs, jointly manufactures and sells smart and connected EVs and autonomous driving and artificial intelligence systems. NIO began deliveries of the seven-seater ES8 in China in June 2018, and the 6-seater ES8 last March. The firm rolled out the five-seater ES6 port utility vehicle in December 2018 and started its deliveries in June, followed by the five-seater EC6 SUV coupe in December, whose shipments will commence this year.
Editor: Ben Armour