Synopsis Shares in Rivian fell nearly 7% in after-hours trading. Initial investors will get an option to buy an additional $200 million of the bonds for settlement 13 days after the bonds are issued, Rivian said in a statement. Reuters Rivian Automotive plans to sell bonds worth $1. 3 billion, it said on Monday, as weakening demand and lofty costs tighten a cash crunch around electrical vehicle makers. Shares in Rivian fell nearly 7% in after-hours trading. Initial investors will get an option to buy an additional $200 million of the bonds for settlement 13 days after the bonds are issued, Rivian said in a statement. The capital from this offering will help facilitate the launch of Rivian's smaller R2 vehicle family, a Rivian spokesperson told Reuters, adding that convertible debt was "optimal cost of capital versus selling equity at today's levels. " Irvine , California-based Rivian, which makes R1T electric pickup trucks and R1S SUVs, has said its cash balance will fund its operations through 2025. It reported cash and cash equivalents of $11. 57 billion at the end of December, down from $13. 27 billion a quarter earlier. In an effort to cut costs, the company last month laid off 6% of its workforce. Late last year, it shelved plans to build delivery vans in Europe with Mercedes and had earlier pushed back by a year to 2026 the planned launch of a smaller R2 vehicle family at the $5 billion plant it is building in Georgia. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Rivian, which has been losing money on every vehicle it builds, forecasts 2023 production well below analysts' estimates as it grapples with lingering supply chain bottlenecks after narrowly missing its target last year. Rivian said the bonds would be "green" ones, which typically offer companies the chance to raise debt more cheaply from investors who are willing to take lower returns in exchange for supporting green projects. Rivian's bond will mature in March 2029 and investors will have the option to convert the bonds into cash or shares in the EV maker. The interest rate, initial conversion rate and other terms of the bonds will be decided at the pricing of the offering. Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here! Tuesday, 07 Mar, 2023 Experience Your Economic Times Newspaper, The Digital Way! Read Complete Print Edition » Front Page Pure Politics Companies ET Markets More India may Pull Plug on FAME II After Next Fiscal India is likely to discontinue the second phase of the ₹10,000 crore Faster Adoption and Manufacturing of Electric Vehicles in India or FAME II scheme after the next financial year, government officials familiar with deliberations said. Foxconn Reassures K’taka, Telangana on Investments Hon Hai Precision Industry, better known as Foxconn, has assured the governments of Karnataka and Telangana that it will work with them to further the expansion of its electronic manufacturing base in the country. Platform to Update DigiLocker Docs Via Aadhaar in Works The government is developing a platform to help citizens who store their documents in DigiLocker to auto-update their address and other demographic details across departments through Aadhaar, officials told ET. Read More News on Rivian news mercedes rivian europe rivian bond irvine Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. . . . more less ETPrime stories of the day Ed-tech Key calls Unacademy has to make: focus on verticals or services; and unlocking value in acquisitions 8 mins read Strategy Starting up to growing up: Brand building in the pressure-cooker era of funding timelines 8 mins read Under the lens Axis MF front-running case: Sebi exposes ‘Jadugar’ but it must bring in systems to nab more Houdinis 12 mins read Subscribe to ETPrime.