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Geely rumored to plow $300 million in startup NIO
Monika From Gasgoo| February 18 , 2020

Shanghai (Gasgoo)- On Feb. 18, a "we media" platform exposed via its WeChat account that Geely, China's biggest indigenous automaker, plans to pump $300 million in the EV startup NIO.

As of press time, both NIO and Geely declined to comment.

Geely NIO

NIO has been frequently talked about its financing moves in recent days. On Feb. 06, the high-profile startup announced that it had entered into definitive transaction documents with an unaffiliated Asia-based investment fund (the Purchaser), pursuant to which NIO would issue and sell convertible notes in an aggregate principal amount of US$70 million to the Purchaser No.1 through a private placement. The closing of this placement was expected to occur on or around February 10, 2020.

Apart from the private placement to the Purchaser, NIO said then it had completed another convertible notes private placement in January 2020 to another unaffiliated Asia-based investment fund on similar terms. The combined aggregate principal amount of the convertible notes issued in the foregoing two placements is around US$100 million.

Last week, NIO announced another similar transaction. The company reached agreements with two Asia-based investment funds (the “Purchasers”), pursuant to which NIO would issue and sell convertible notes in a total principal amount of US$100 million to the Purchasers through private placement. The completion of both placements was expected to occur on or prior to Feb. 19, 2020.

Hence, the combined principal amount of the convertible notes issued in all private placements announced as of Feb. 14 will aggregate US$200 million once fully completed.

It seems that any moves about NIO will draw multiple attention of the industry, especially about its financing situation. In middle January, a report saying the state-owned automaker GAC Group was seeking to raising around US$1 billion for future investment in NIO went viral. GAC Group stated afterwards “the report is untrue”, while acknowledged the talk had taken place between them.

Besides, the foregoing “We media” platform also disclosed Geely and FAW Group were also among the potential investors of NIO.

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