Swiss handle issue

CHINA Textile Machinery has signed an underwriting agreement with Swiss Bank Corp and Shanghai Shenyin Securities on its convertible bond issue, the Shanghai Securities Exchange says.

Agreement on the five-year convertible bond, the first for a mainland firm, was signed yesterday in Zurich, the exchange said.

The Shanghai-listed weaving machine maker is to issue convertible bonds worth 35 million Swiss francs (about HK$180 million), which will carry a one per cent yearly interest rate.

Bondholders can convert their bonds into China Textile's B shares at a conversion price of 43 US cents from January 1.