Rivian Stock Dips Following Announcement of $1.5 Billion Green Bond Initiative
Rivian has introduced a $1.5 billion green convertible bond to support sustainable energy projects, impacting its stock value.
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Highlights
- Shares of Rivian Automotive Inc. dropped by 20% in early trading after unveiling a $1.5 billion green bond offering.
- The proceeds from these convertible notes are earmarked for financing new or recently completed environmentally friendly energy initiatives.
- Rivian raised its quarterly revenue forecast to between $1.29 billion and $1.33 billion, reflecting strong delivery growth.
On Thursday, Rivian Automotive Inc. (RIVN) experienced a significant share price decline following the announcement of a $1.5 billion green bond issuance aimed at advancing sustainable energy projects.
The electric vehicle manufacturer, known for its R1T pickup and R1S SUV, revealed plans to offer convertible senior notes maturing in 2030 exclusively to qualified institutional investors.
Additionally, Rivian disclosed that initial purchasers may have the option to acquire an extra $225 million in notes. Key terms such as interest rate and conversion rate will be finalized during pricing.
The company intends to allocate the raised capital toward financing, refinancing, or direct investments in one or more new or recently completed green energy projects.
Rivian also projected quarterly revenues between $1.29 billion and $1.33 billion for the period ending September 30, marking a substantial increase from $540 million in the same quarter last year. This surpasses analyst expectations of $1.31 billion, driven primarily by higher delivery volumes.
Despite a 20% drop in share price by midday Thursday, Rivian's stock remains on an upward trajectory for 2023.
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