BYD plans up to $939mn bonds to repay loans

HONG KONG: Chinese auto and battery maker BYD Co Ltd, backed by Warren Buffett, said on Friday it planned to issue up to 6 billion yuan ($938.97 million) worth of bonds in China.

The proceeds from the bonds will be used to adjust its debt structure, repay bank loans and for working capital, BYD said.

The issue of the bonds, with a maturity of up to 10 years, is subject to the approval of shareholders and relevant authorities, the company added.

BYD shares in Hong Kong have fallen about 23 percent so far this week after the company warned that it could post a third-quarter loss as it struggles with sales declines and the waning popularity of its top model.

BYD had said on Thursday that it would start shipments of electric buses to Taiwan by the end of 2011 and the next step could be setting up a production plant there.

Copyright Reuters, 2010