In brief: ‘Tesla of China’ raises $650m in convertible bond

Shanghai-based Tesla rival Nio has raised US$650 million in a five-year convertible bond. The electric carmaker plans to use the proceeds for research and development, sales and marketing, and manufacturing facilities development.

Tencent Holdings and Hillhouse Capital Management, Nio’s existing backers, will buy US$30 million and US$5 million of the convertible bond, respectively.

The carmaker’s latest move to raise capital via an equity-linked bond comes only four months after its US$1 billion IPO in New York.

Source: Reuters