Laminate manufacturer Kingboard Chemical Holdings yesterday signed more than US$10 million worth of convertible redeemable non-voting preference shares to Citicorp Everbright China Fund. The net proceeds will provide funding and working capital for the group's expansion projects. Kingboard has also entered into another agreement with six institutional investors to issue a maximum $20 million in convertible and exchangeable notes. Net proceeds will be put towards a copper foil production expansion facility in the mainland. Chairman Cheung Kwok-wing said demand for laminates had remained strong despite the economic crisis. 'Since laminates are a basic material for the production of most electrical and electronic products, demand remains steady,' he said. 'The Asian financial turmoil and the adverse economic conditions in Hong Kong and in the [mainland] have had little impact on us.' The subscription agreement was entered into between Kingboard and Legend Industries, a wholly owned subsidiary of Citicorp Everbright China Fund. 'We aim to choose the best businesses to invest in, especially in bad times,' Citicorp Everbright China Fund chairman Vincent Fan Chor-wah said. 'We have done a year's worth of preparation to ensure this operation will run smoothly and we have full confidence in them.'