SYDNEY, Sept 20 Reuters Chinese electric vehicle maker Nio Inc said on Wednesday it had raised 1 billion in a twotranche convertible bond from which it intends to use the proceeds to pay down debt and strengthen its balance sheet.

The company raised 500 million in a sixyear putfour convertible bond and the same amount in a sevenyear putfive bond.

The bonds will be senior, unsecured notes. The shorter dated bond has a 3.875 interest rate, while the sevenyear bond39;s rate is 4.625, Nio said in a Hong Kong Stock Exchange announcement.

Nio39;s Hong Kong shares dropped 12 in morning trade on Wednesday after the final pricing decision was set.

The company plans to use a portion of the net proceeds from the notes offering to repurchase a portion of the existing debt securities … and the remainder mainly to further strengthen its balance sheet position as well as for general corporate purposes, the company said.

Nio said in late August it planned to launch its first selfdevelopment mobile telephone later this month to improve the appeal of its cars with better software and connectivity.

Nio posted a net loss of 6.12 billion yuan 839.51 million in the second quarter, versus a loss of 2.75 billion yuan in the corresponding period a year earlier.

Reporting by Scott Murdoch in Sydney; Editing by Michael Perry and Jacqueline Wong

Source Reuters