On the evening of February 6, NIO announced that it had completed a total of approximately $ 100 million in convertible debt financing, the investors were two Asian investment funds that had no affiliation with NIO, amounting to $ 70 million and about $ 30 million, respectively.
NIO said that in addition to the financing action announced this time, the company has several other financing projects that are still in progress, and the relevant information is still uncertain at this stage. The company will disclose important progress and information in accordance with corresponding legal requirements.
Recently, around the news of NIO’s financing, after completing the US $ 200 million convertible bond financing from Tencent and Li Bin, on January 15th, the industry also circulated that “GAC Group will invest in NIO” NIO said: “For financing projects, please refer to the announcement of the listed company.” GAC Group said: “The two parties have discussed NIO’s financing plan, but they are still in the early stages and have not formed any binding agreement. There is greater uncertainty as to whether an agreement can be reached in the end.”
What is certain is that NIO has been actively promoting financing. Feng Wei, CFO of NIO, stated on the company’s third quarter earnings conference call 2019 that NIO did a lot of work on financing projects, but it is still in the confidential stage.
At present, affected by the Wuhan Virus, Chinese auto companies have generally postponed their return to work, all auto companies are under varying degrees of pressure. NIO received US $ 100 million in financing at this time, or it will provide more protection for it to pass this special period.