NIO : NIO 0% is proposing to issue US$500 million of convertible senior notes due 2029, with another US$500 million note offering due 2030.

“The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the notes,” said the Chinese electric vehicle maker on Tuesday (Sep 19).

The company said it intends to grant the initial purchasers in the notes offering an option to purchase up to an additional US$75 million in aggregate principal amount of the 2029 notes, and up to an additional US$75 million in aggregate principal amount of the 2030 notes.

The option is exercisable within a 30-day period beginning on, and including, the date of the notes offering.

Upon conversion of the notes, the company will pay or deliver cash or the company’s American Depositary Shares (ADS), or a combination of cash and ADS.

Holders who receive shares upon conversion of the notes may exchange them for Class A ordinary shares for trading on the Hong Kong Stock Exchange or Singapore Exchange.

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The company said it plans to use a portion of the net proceeds from the notes offering to repurchase a portion of the existing debt securities.

The remainder of the proceeds will be used to further strengthen its balance sheet position, as well as for general corporate purposes.

The counter fell 3.1 per cent or US$0.33 to US$10.37 on Monday.