CHINA Southern Glass Holdings is to issue US$45 million of convertible bonds early next month after clearance from the China Securities Regulatory Commission.
The Shenzhen B share counter will become the second mainland-issued company to tap the international capital market with a convertible bond issue after Shanghai's China Textile Machinery.
The company was given state approval two years ago to raise up to $60 million with the bond issue.
The company revived the fund-raising plan a few months ago in an attempt to fund its $130 million ultra-thin float glass plant.
Deputy general manager Wang Chunsheng said: 'We proceeded with the plan in accordance with our needs and also the market situation.' The convertible bonds would mature in five years and bondholders would be allowed to convert them into B shares six months after the issue.
Southern Glass plans to borrow $30 million in a syndication loan and 100 million yuan (about HK$93.13 million) from mainland banks.