IN a move seen as a major build-up of its war chest, Hysan Development Co is to sell US$175 million worth of guaranteed convertible bonds on the market.
The property investment firm said the proceeds of the issue would be used to repay some secured and unsecured bank loans and for general corporate purposes, but property analysts speculated the company was preparing for some aggressive expansion.
This could include the forthcoming tenders for large property developments in Central's business district.
Hysan said yesterday it had entered into a subscription agreement between its wholly owned subsidiary HD Finance (Cayman), Morgan Stanley & Co International and other parties relating to the issue of five-year convertible guaranteed bonds due June 1, 2000.
The bonds will be issued by HD Finance and guaranteed by Hysan Development.
Morgan Stanley is the sole lead manager.