By Jiahui HuangNio's Hong Kong shares fell in early Asia trading on Wednesday, following an overnight drop in U.S.-listed depository shares after the Chinese electric-vehicle maker said it would raise US$1 billion via an issuance of convertible bonds. Nio is raising $500 million via the issuance of convertible senior notes due 2029 and $500 million via another tranche due 2030. It plans to use part of the proceeds to buy and cancel $500 million in 2026 convertible notes on which it pays coupons of 0.00% and 0.50%. The company plans to use the remaining proceeds largely for general corporate needs and to strengthen its balance sheet. The drop in share price partly reflects the fact that the bonds can be converted into shares, potentially diluting the holdings of existing shareholders.

Source: Wall Street Journal September 20, 2023 09:40 UTC