Nokia seeks financing boost through bonds

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Nokia seeks financing boost through bonds

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Troubled mobile phone maker Nokia has revealed plans to raise 750 million euros by selling bonds.

Investors will be able to later convert those bonds into shares.

The Finnish firm is doing this as a cheap way to bolster its fragile finances.

Once the world’s biggest mobile phone maker, Nokia is burning through money having fallen far behind Apple and Samsung in the lucrative smartphone market.

It is pinning its hopes for recovery on new models that go on sale next month.

Analysts have said Nokia needs to show a turnaround in the next several months if it is to survive.

Nokia’s net cash reserves fell to 3.6 billion euros in September from 4.2 billion in June. It also finished the third quarter with 3.8 billion euros in interest-bearing liabilities, with 1.75 billion in bonds and loans maturing in 2014.

Additionally, the company owns half of network equipment venture Nokia Siemens Networks, which finished the quarter with 1.4 billion euros in liabilities.

The convertible bonds will be due in 2017 and will pay interest of between 4.25 percent and 5.00 percent.