Oct 29, 2014 - China-based Shunfeng Photovoltaic International Ltd (HKG:1165) said yesterday it has agreed to sell 3-year convertible bonds in two separate offerings, expecting to raise HKD 2.8 billion (USD 361m/EUR 283m).
The solar photovoltaics (PV) maker and solar parks developer plans to use the proceeds to meet the capital costs for its existing solar projects and for the expansion of its business, including acquisitions. Some of the funds will go for general corporate needs, it noted.
Shunfeng PV aims to achieve grid-connected solar power generation capacity of 10,000 MW by end-2016 both at home and abroad.
The Chinese company will offer up to HKD 2.1 billion worth of convertible bonds A with an annual interest of 5%. The bonds will convert into Shunfeng PV stock at HKD 7 apiece and will be equal to no more than 300 million shares upon full conversion. The proposed conversion price represents a premium of about 1.89% to the closing price of the company’s stock on October 28.
In addition, Shunfeng PV will sell as much as HKD 700 million worth of convertible bonds B, also convertible at HKD 7 each. Upon full conversion, the bonds will convert into up to 100 million Shunfeng PV shares.
The first transaction is expected to be completed by November 28, while the second one is to be wrapped up on or before January 31, 2015.
(HKD 10 = USD 0.129/EUR 0.101)
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