New World Infrastructure (NWI) combined yesterday's announcement of a 25 per cent rise in interim net profit with news it is planning a US$250 million five-year convertible bond issue to finance future expansion.
The infrastructure company said net profit for the six months to December was HK$342.62 million compared with $273.41 million previously, a 25.3 per cent rise.
It said the result was attributable primarily to substantial growth in the contribution from its mainland investments as well as an improvement in its Hong Kong businesses.
Earnings per share for the period rose 7.14 per cent to 39 cents from 36.4 cents with turnover of $381.11 million. Directors did not declare an interim dividend.
Chairman Henry Cheng Kar-shun said the bond would carry a coupon rate of 1 per cent, with an exercise price set at a premium of between 15 and 20 per cent of the present trading price.
The yield to maturity was pitched at five-year US Treasury bonds plus between 225 and 250 basis points, he said.
