Sat. Sep 23rd, 2023
    NIO to Launch $1 Billion Convertible Bond Offering

    NIO Inc, the Chinese electric vehicle (EV) company, has announced the launch of a $1 billion convertible bond offering. The bonds will have divided maturities, with half of them maturing in 2029 and the other half in 2030. While financial details such as interest rates and stock conversion terms have not been disclosed, the proceeds from this financing will be used to repay existing debts and strengthen NIO’s balance sheet.

    However, the news of the bond offering has led to a 4% drop in NIO’s stock in early pre-market trading. Despite this, NIO has been gaining momentum in international sales and is considered one of the Chinese EV companies that is breaking into the European and North American markets. Its models are seen as more affordable compared to Tesla’s high price point.

    Renault’s CEO, Luca de Meo, recently commented that Chinese brands are “a generation ahead” of European EV manufacturers, highlighting the need to close the gap in terms of cost competitiveness. These statements were made at an automotive industry event in Munich, where there was a public relations dispute between Chinese and European authorities.

    In response to the growing presence of Chinese EVs in global markets, the European Union launched an “anti-subsidy” investigation against Chinese EV manufacturers last week. Ursula von der Leyen, President of the European Commission, mentioned in her State of the Union speech that the Chinese EV sector is flooding global markets with cheaper electric cars due to substantial state subsidies. She emphasized the need to address these unfair trade practices and market distortions.

    – None (The original article does not provide a source).