Nio, Inc. (NYSE: NIO) recently announced approval for a secondary listing in Hong Kong without issuing any shares.
After shunning an opportunity to raise fresh capital, it now appears the company has tapped the debt market in China.
Nio's financial leasing subsidiary has raised 1.03 billion yuan ($163 million) through the issuance of asset-backed medium-term notes in China's interbank market, CnEVPost reported, citing the company.
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This follows a 1-billion-yuan asset-backed securities offering done in October 2021, the report said. Nio is not listed in the Chinese stock markets and its proposed secondary listing in Hong Kong does not give the company access to the “Connect Program.”
The offering is reportedly divided into two tranches — a 800-million-yuan senior A-rated ABN with a debt rating of AAA and 2.89% coupon rate, and a 47-million-yuan senior B-rated ABN with a debt rating of AA+ and 3.5% coupon rate. These ABNs have maturity dates of March 26, 2024, the report said.
Citing the company, the report said the offering was actively subscribed.
Nio reportedly said it expects the proceeds from the ABN offering for its EV business, primarily to provide lease financing options for purchasers of its vehicles.
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