Beijing Yanjing Brewery has become the latest mainland company to raise funds on the country's capital market, taking advantage of low yuan interest rates and the prevailing stock-market volatility.
The country's second-largest brewer said it would issue 700 million yuan (about HK$656.04 million) of bonds convertible into shares to raise funds for business development and acquisitions.
The five-year convertible bonds would carry an annual coupon of 1.2 per cent.
The rate is much lower than the benchmark five-year banking lending rate of 5.58 per cent.
The brewer's existing shareholders have priority when subscriptions open tomorrow.
The bonds, to be listed in Shenzhen, can be converted into shares from October 16 next year at a conversion price of 10.59 yuan a share.