(Reuters) -Electric-vehicle maker Rivian Automotive on Wednesday said it plans to sell green convertible bonds worth $1.5 billion and forecast quarterly revenue to rise in line with estimates.
The Irvine, California-based company's shares fell nearly 7% in after-hours trading.
Green bonds typically offer companies the chance to raise debt more cheaply from investors who are willing to take lower returns in exchange for supporting green projects.
The Amazon-backed startup firm beat third-quarter deliveries expectations earlier this week as it ramped up production to meet sustained demand for its pickup trucks and SUVs despite high borrowing costs for consumers.
Rivian, like its EV rivals, has been burning through cash to ramp up production and keep up with market leader Tesla, which has slashed prices amid concerns of softening demand for electric vehicles in the United States.
Rivian's cash balance as of Sept. 30 was estimated to be at $9.1 billion, down from $10.2 billion in June, it said.
The company expects revenue for the three months ended Sept. 30 to be between $1.29 billion and $1.33 billion, compared with nearly $540 million a year earlier. Analysts on average were expecting $1.30 billion, as per LSEG estimates.
(Reporting by Savyata Mishra in Bengaluru; Editing by Maju Samuel)
