361 Degrees plans offshore yuan bond issue

PUBLISHED : Monday, 01 September, 2014, 10:01am
UPDATED : Monday, 01 September, 2014, 10:01am

Fujian-based sportswear firm 361 Degrees International is looking to raise fresh capital through an offshore yuan bond offering after reporting interim results last month.

In a filing with the Hong Kong stock exchange on Monday, the Chinese retailer said it had appointed Merrill Lynch International, CLSA and ING Bank’s Singapore branch as bookrunners for the proposed offering, without giving details of its size.

“The company proposes to conduct an international offering of [yuan-denominated] senior unsecured notes,” the firm said.

The net proceeds of the bond offer would be used to refinance existing debt and for general working capital purposes, it said.

361 Degrees reported that its gearing ratio, a gauge of indebtedness, dropped to 8.8 per cent in June from 11 per cent at the end of last year, while the number of inventory turnover days fell to 59 for the first half of this year from 73 a year earlier.

In a separate statement, the firm said wholesale orders at its 2015 spring/summer trade fair rose 11 per cent from a year earlier.

Average selling prices for footwear and apparel improved, it said. The sales volume of footwear increased, while that of apparel goods remained flat.

Net profit at 361 Degrees jumped 28 per cent year on year to 263 million yuan (HK$331 million) for the first six months, while gross profit margin improved to 39.7 per cent from 39 per cent.

The company sponsors the Chinese national cycling and swimming teams.