Chinese electric manufacturers BYD and Nio have raised fresh money. While BYD gained around 3.9 billion US dollars through the sale of new shares, Nio successfully placed two bonds totalling 1.5 billion dollars.
BYD‘s shares, which are traded on the Hong Kong Stock Exchange, have gained around 400 per cent in value over the past twelve months. BYD is now using this price increase to raise fresh money by issuing new shares in the course of a capital increase. The company agreed to sell 133 million shares at 225 Hong Kong dollars each (about 29 US dollars, or just under 24 euros), a 7.8 per cent discount from Wednesday’s closing price of 244 Hong Kong dollars.
The move nets BYD about 3.9 billion US dollars (3.2 billion euros). According to Yahoo Finance, this is the largest volume received through a share placement in Hong Kong since 2014. BYD plans to use the funds for research and development and to pay off debt, among other things. In the past, capital increases on a similar scale were initiated by the Chinese electric car manufacturers Xpeng and Nio. Xpeng sold shares worth $2.5 billion, Nio in the region of $3.1 billion.
Nio has now also placed two bonds totalling 1.5 billion US dollars (1.24 billion euros), in other words, taken on new debt. These are called “convertible senior notes” with a nominal value of 750 million dollars (618 million euros) each and maturity in the case of the first bond in 2026 and in the case of the other in 2027.