Finnish phone maker Nokia is planning to raise $972m through convertible bonds to strengthen financial position to regain its market share, which it lost to rivals such as Apple and Samsung.
According to the firm, the convertible bonds will be due in 2017 and will reimburse a coupon ranging between 4.25% and 5%.
Nokia, which formerly was the world’s biggest mobile phone maker, has dropped behind Apple’s iPhone and Samsung’s Galaxy smartphones in the profitable smartphone market, and is hoping for a recovery through new models that are scheduled to go on sale in November 2012.
In September, the firm reported decline in its net cash to €3.6bn, down from €4.2bn in June 2012, and its credit ratings were reduced to junk over 2011.
Earlier this month, Nokia has revealed its plans to sell its headquarters, valued at €200-300m, as part of its move to discard non-core assets.
Nokia is counting on a revival through Lumia 820 and 920 smartphones that run on US based Microsoft’s new Windows Phone 8 operating system.
The firm unveiled the lower end Lumia 510 smartphone featuring larger screen which will be on sale at a price of $199.
Content from our partners
