Nio praises $ 1.3 billion in convertible bonds, half of which pay no interest

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Nio Inc. NIO,
-1.05%
announced the price of the $ 1.3 billion in convertible bonds on Wednesday, including $ 650 million in bonds due 2026 and $ 650 million in bonds due 2027. The China-based electric vehicle manufacturer said the senior unsecured bonds from 2026 will not pay interest, and the principal will not accrue. Nio’s share fell 0.3% in premarket trading. The 2027 senior notes will pay interest at a rate of 0.50% per annum. The holders can convert the 2026 notes on or after August 1, 2025 on or after August 1, 2025 and the 2027 notes can be converted on or after August 1, 2026 into cash, US despositary shares (ADS), or a combination of cash and ADS . The initial exchange rate for notes to ADS is the equivalent of $ 93.06 per ADS, which is 50% higher than Tuesday’s closing price of $ 62.04. Nio shares are up 187.0% in the past three months to Tuesday, while the iShares MSCI China ETF MCHI,
+ 1.16%
has won 8.0% and the S&P 500 SPX,
+ 0.04%
is up 8.2%.

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