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sources say tesla plans to issue 5.525 billion yuan in bonds using high-quality leases as collateral

2024-10-07

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it house news on october 7, according to bloomberg, tesla is currently pre-marketing a bond worth us$783 million (it house note: currently about 5.525 billion yuan) on the market. this bond is made of high-quality the borrower's car lease contract serves as collateral support.

the sale, reportedly led by societe generale, is expected to be formally priced next week.

in march, tesla issued an asset-backed security (abs) worth us$750 million with a maximum coupon rate of 5.53%.

abs sales are increasingly common among automakers, and the bond sale would be tesla's second such deal this year. the deal gives tesla access to liquidity without having to take on other debt that could increase the company's costs.

in 2022, tesla raised nearly $4 billion in securitization financing, a record high for the company. but the company has raised less frequently through securitizations than many traditional automakers.

tesla will hold its third-quarter earnings call on october 23, and the company reported earlier this week that it delivered 462,890 vehicles in the third quarter.