Veoneer to sell 500 million USD of bonds, equity to boost working capital

Swedish auto tech company Veoneer plans to raise $500 million through the sale of equity and bonds to shore up working capital, as its strong order book has yet to translate into a pick-up in earnings.

A weak car market and high research, development and engineering costs have led to slower sales and larger-than-expected losses for the maker of radars, vision systems and advanced driver assistance and autonomous drive software, Reuters reads.

Veoneer, which supplies Daimler, Volkswagen, Ford and Honda among others, will offer 350 million USD worth of common shares and 150 million USD of convertible senior notes maturing in 2024, it said in a statement late on Monday.

“Veoneer intends to use the net proceeds from the common stock offering and concurrent convertible notes offering for working capital and other general corporate purposes,” the company said.

Veoneer, which competes with the likes of Aptiv, Continental and Bosch, said in April that it would seek up to 500 million USD in new capital to help it cope with a downturn in the vehicle market and fund new product development.