With cash reserves dwindling, Nokia looks to raise $1 billion from bonds

Nokia (NOK) on Tuesday announced that it will be issuing a new batch of convertible bonds that it hopes will generate €750 million, or roughly $980 million. The once dominant cell phone vendor has posted a loss in six consecutive quarters and continues to burn through its cash reserves. Timo Ihamuotila, Nokia’s Executive Vice President and CFO, says the company’s actions have been “designed to further strengthen our financial position and liquidity profile while allowing us to benefit from the current attractive long-term financing opportunities in the convertible bond market.” The net proceeds generated from the bonds, which are set to become Nokia shares in 2017, will assist the company in managing its capital structure and help it proactively address its upcoming debt while preserving existing assets.