Diversified group Styland Holdings has secured a $115 million convertible note to fund potential infrastructure investment on the mainland, executive director Henry Chan Bing-kwong says. Speaking after the company's annual general meeting yesterday, Mr Chan said the fund raising exercise would boost capital reserves ahead of identifying potential infrastructure projects. The note was sold to institutional investors and could be converted into a total of 312 million new Styland shares at 37 cents a share. Mr Chan said the note was unlikely to pressure the company's gearing level, describing current interest expenses as 'not outrageous'. The company, which invests in properties and trades securities and garments, plans to spend $20 million redeveloping a site at Fei Ngo Shan, Kowloon, next year. 'We have not decided what we will build there. A decision will be made early next year,' Mr Chan said. Another $30 million will be used to replenish its land bank, and $30 million to expand its finance and securities trading activities. The remainder will be used as working capital. Styland, which was investigated by the Securities and Futures Commission for unusual share price movement last month, closed one cent higher yesterday at 80 cents. It has risen 38 per cent in the past month. Mr Chan said he was not aware of the reason for the rise.