NIO China to gain 10.4 billion yuan worth of credit line from six banks

Monika From Gasgoo| July 10 , 2020

Shanghai (Gasgoo)- NIO China will receive a credit line worth 10.4 billion yuan ($1,484,568,800) from six Chinese banks, the EV maker announced on July 10.

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(Photo source: NIO)

Under the strategic agreement signed on July 10, the credit line afforded by six banks—the Anhui branches of China Construction Bank, Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Industrial Bank Co.,Ltd. and China Merchants Bank—will be used to support the operation and development of NIO China’s business.

Besides, NIO China will team up with the aforesaid banks on such areas as the enterprise account system building, the supply chain finance and automobile finance.

At the signing ceremony, William Li, chairman and CEO of NIO, said the newly-formed collaboration will help NIO China speed up the construction of its headquarters in Hefei and business development. Going forward, NIO will further expand its Hefei team and deepen the cooperation with local suppliers, so as to help Hefei form a global leading innovation capacity in intelligent EV field.

As of the press time, NIO has raised over 10 billion yuan ($1,427,470,000) of funds so far this year by selling convertible notes, obtaining strategic investments for NIO China and offering American depositary shares. The newly-approved credit line further indicates that NIO has been solved its potential cash flow issue and regained the market's confidence.

NIO delivered 3,740 vehicles in June 2020, representing a 179.1% year-on-year surge and hitting a historical high level. The deliveries consisted of 2,476 ES6s and 1,264 ES8s. Partly thanks to the blooming growth in June, NIO also achieved its best-ever quarterly sales with 10,331 vehicles sold in the second quarter, a year-on-year increase of 190.8%.

NIO announced on June 28 that the investors had substantially completed the cash injection obligations for the first two installments of their investments in NIO China. NIO (Anhui) Holding Co., Ltd., the legal entity of NIO China, has received from the investors 4.8 billion yuan ($685,185,600) out of the 5 billion yuan ($713,735,000) of cash investments for the first two installments.

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