LIPPO subsidiary Hong Kong China is set to launch a US$120 million convertible note through the Swiss subsidiary of a Japanese bank.
The two per cent note due in 1999 is convertible into a stake of up to 20 per cent of the company.
The notes can be converted any time after March 22. If not converted, interest of two per cent will be paid each year in arrears on December 31.
The notes are to be underwritten by a syndicate of undisclosed financial institutions led by Daiwa Securities Bank (Switzerland).
Hong Kong China is issuing the notes through a special subsidiary, Hong Kong China Treasury.
A deal between the banks and Hong Kong China, which is guaranteeing the bonds, is expected to be signed next Tuesday. Payment date for the bonds is scheduled for February 22.