Aston Martin, the favourite car maker of a certain fictional secret agent, has been forced to turn to a different kind of bond, raising $150 million (€140 million) to boost its struggling financial position.

The UK-listed business has been struggling to hit targets in recent months but bosses hope to use the extra cash to help develop and build its first SUV – the DBX.

However Aston Martin will now be under extra financial pressure, as the bonds come with a 12% interest rate paid each year until April 2022. At that point, the company must repay the full amount.

Shares dropped more than 5%, down 29.4p to 545.4p. It listed on the stock market a year ago at 1,900p a share, but suffered a shock profit warning in June and heavy criticism after the float costs were revealed to be £136 million (€150 million).

Aston Martin will use the money to finish off development of its first SUV, the DBX.

The high rates come after ratings agency Moody’s cut Aston Martin’s credit rating, blaming a “lack of progress in terms of volume growth and profitability for 2019”.

Mark Wilson, Aston Martin Lagonda chief financial officer, said: “At the (half year) results we highlighted that we expected macroeconomic headwinds and uncertainty to continue."

“These circumstances require flexibility in our financing arrangements to ensure that resources are available to deliver the Second Century Plan."

“What we have announced today is a cost and time-effective structure that immediately strengthens our liquidity in the short-term and the option to draw further funding as we successfully execute the plan."

“Aston Martin’s first SUV, the DBX, remains operationally on track and we are very pleased with the reception the car received at Monterey Car Week during August.”

He added that demand for its £3 million (€3.4 million) Valkyrie hyper car sold out – 150 were built – and there is “excess customer demand” for its £1 million (€1.1 million) Valhalla cars.

Russ Mould, investment director at AJ Bell, said: “The car manufacturer is known for its high end prices and that situation now also applies to its debt."

“Aston Martin is taking on 150 million dollars (€140 million) of extra borrowing with a 12% interest rate, as well as an option to have another $100 million (€91.1 million) at 15%."

“These rates are very high and are a major red flag that investors consider the car company to be a high-risk entity.”