China’s CAR raises USD 200m via bond sales to repay old debt

The company’s chairman Lu Zhengyao is also non-executive chairman and angel investor at Luckin Coffee

Chinese car rental company CAR Inc filed with the Stock Exchange of Hong Kong on Wednesday that it will sell senior notes, or bonds, worth USD 200 million.

The company, which allows individuals to rent a car via its app or offline stores and also leases vehicles to its affiliate ride-hailing platform UCAR, said it intends to use the proceeds for “repayment of existing debt and general corporate purposes”.

CAR made a net profit of RMB 290 million (USD 42.9 million) in 2018, down 67% year-on-year amid fierce competition from ride-hailing and car-sharing companies, its annual report shows.

CAR’s chairman Lu Zhengyao is also the non-executive chairman and angel investor of the on-demand coffee delivery chain Luckin Coffee, which has filed for its initial public offering in the United States, aiming to raise USD 586.5 million.

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Editor: Nadine Freischlad