Chinese EV maker Nio secures US$ 1.5 billion in convertible bond deal: Report 

Chinese electric vehicle maker Nio said that it had raised US$ 1 billion in a two-tranche convertible bond, the proceeds of which will be used to pare debt and bolster its balance sheet, Reuters reported. 

The company raised US$ 500 million in a six-year put-four convertible bond and the same amount in a seven-year put-five bond, the newswire reported. It further stated that the bonds will be senior, unsecured notes. The shorter-dated bond has a 3.875% interest rate, while the seven-year bond's rate is 4.625%, Nio mentioned in a Hong Kong Stock Exchange announcement.

The company's shares dropped 12% in morning trade, after the final pricing decision set, Reuters noted. 

"The company plans to use a portion of the net proceeds from the notes offering to repurchase a portion of the existing debt securities ... and the remainder mainly to further strengthen its balance sheet position as well as for general corporate purposes," Nio said.

The company mentioned in late August that it planned to launch its first self-development mobile telephone later this month to improve the appeal of its cars with better software and connectivity, the newswire further stated.