Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Nio Reportedly Raises $163M Through Debt Offering In China: What Investors Need To Know

Published 03/03/2022, 16:35
Updated 03/03/2022, 17:10
© Reuters.  Nio Reportedly Raises $163M Through Debt Offering In China: What Investors Need To Know
USD/CNY
-
GIG
-
CHNA
-

Nio, Inc. (NYSE: NIO) recently announced approval for a secondary listing in Hong Kong without issuing any shares.

After shunning an opportunity to raise fresh capital, it now appears the company has tapped the debt market in China.

What Happened: Nio's financial leasing subsidiary has raised 1.03 billion yuan ($163 million) through the issuance of asset-backed medium-term notes in China's interbank market, CnEVPost reported, citing the company.

This follows a 1-billion-yuan asset-backed securities offering done in October 2021, the report said. Nio is not listed in the Chinese stock markets and its proposed secondary listing in Hong Kong does not give the company access to the "Connect Program."

The offering is reportedly divided into two tranches — a 800-million-yuan senior A-rated ABN with a debt rating of AAA and 2.89% coupon rate, and a 47-million-yuan senior B-rated ABN with a debt rating of AA+ and 3.5% coupon rate. These ABNs have maturity dates of March 26, 2024, the report said.

Citing the company, the report said the offering was actively subscribed.

Nio reportedly said it expects the proceeds from the ABN offering for its EV business, primarily to provide lease financing options for purchasers of its vehicles.

Related Link: Nio Analyst Predicts Over 200% Upside For Stock: 'EV Maker Has Clear Growth Prospects In 2022'

Why It's Important: Nio had a tough 2021, with its fundamental performance getting hit from component shortages. Its stock has also come under a steep sell-off amid the rough patch.

The outlook for 2022 is promising: the company has lined up three products for release this year that are expected to push up volumes significantly.

The leasing option that Nio has planned could help the company leverage its product offerings given that most of its EVs are positioned as premium products.

At last check, Nio shares were slipping 7.44% to $20.15.

Related Link: Nio Analyst Sees Opportunities In 2022 And Beyond; So Why Is He Halving The Price Target?

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.