Reuters Electricvehicle maker Rivian Automotive on Wednesday said it plans to sell convertible green bonds worth 1.5 billion and forecast quarterly revenue to rise in line with estimates.

The Irvine, Californiabased company39;s shares fell nearly 8 in afterhours trading. Convertible bonds can be dilutive when converted into shares and are typically seen negatively by investors when issued.

Rivian39;s bond will mature in October 2030 and investors will have the option to convert the bonds into cash or shares in the company, it said in a filing.

Initial investors will get an option to buy an additional 225 million of the bonds for settlement 13 days after the bonds are issued.

While the issuance is having a negative impact the stock, it was prudent of Rivian because the market could get really tight, said with Ivana Delevska, chief investment officer of Spear Invest, which holds Rivian through its Spear Alpha ETF. You want to be safe than sorry.

Wednesday39;s plan to sell green bonds that typically offer companies the chance to raise debt more cheaply from investors who are willing to take lower returns in exchange for supporting green projects comes after a similar 1.3 billion bond sale in March that Rivian had said would help facilitate the launch of its smaller R2 vehicle family.

The purpose of this offering, similar to our raise earlier this year, is to derisk the launch of R2 in Georgia, a Rivian spokesperson told Reuters. Our primary goal is to maintain a…