News Column

Nokia to Make Convertible Bond Offer

Oct. 23, 2012

Finnish mobile phone maker Nokia Tuesday said it would make a convertible bond offer aimed at raising 750 million euros ($950 million).

Last week Nokia reported a $1.2-billion-dollar loss for the third quarter, amid falling sales of its handsets especially in the smartphone sector against rival platforms such as Android and Apple.

The company's net cash was 3.5 billion euros, down 15 per cent from the second quarter.

"This offering is designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market," said chief financial officer Timo Ihamuotila.

The bonds were due in 2017 and convertible into ordinary shares.

The company said the bonds were to carry a coupon rate of between 4.25 and 5.00 per cent.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters