CHINA Everbright International intends to raise $561.6 million through a rights issue to repay money borrowed to invest in a China joint venture and to expand the group's securities business. The company said it planned to issue 468 million new shares at $1.20 each, with three rights shares offered for every two existing shares. On warrant will be issued for every three rights shares. Of the $552.6 million net proceeds, about $175 million will be used to repay US$22 million borrowed to pay for a 10.93 per cent interest in the enlarged share capital of a joint venture in Shenzhen. The company, through a wholly owned subsidiary, has agreed to take an interest in 999 Chia Tai Pharmaceutical Co, for 159.9 million yuan (about HK$142 million), to be settled in US dollars. The registered capital of the joint venture, to be renamed 999 Pharmaceutical Co, will be expanded from 608.5 million yuan to 1.46 billion yuan. It plans to expand its existing business in research and development, manufacturing, marketing and trading in medical balls, pills, powders, capsules and other pharmaceutical products, health-care and related products, which may include stomach and otherChinese and Eastern medicines. At present, most of its products are sold domestically, but it aims to change the balance to 60 per cent exports and 40 per cent domestic sales. ''The directors believe that the company's investment in 999 Pharmaceutical will allow the company to diversify its business activities into the medicine and healthcare-products industry and expand the company's income base after completion of the joint venture agreement,'' said managing director Wang Yake in a company statement issued last night. ''The directors of the company also believe that the investment is in line with the long-term objective to diversify the business activities of the company and its subsidiaries and provides growth in the company's sources of earnings and will be beneficial to the group and the company's shareholders as a whole. ''The foreign partners to the joint-venture agreement intend to participate in the business of 999 Pharmaceutical in financial and marketing aspects.'' The joint venture posted a net profit of 173.52 million yuan for last year, using China's accounting standards, after booking a net loss of 16.87 million yuan for the six months to December 31, 1992. About HK$50 million of the issue's proceeds are earmarked for the expansion of the group's securities and marginal-financing businesses. The balance will be used as additional working capital. ''The group has also been negotiating with a number of PRC parties on other potential investments in certain industries, such as light-goods vehicles, which the directors of the company believe will have rapid growth potential with the participation of the group's management,'' Mr Wang said. ''In addition, in light of the current buoyant stock market conditions in Hong Kong, the directors of the company are also formulating plans for the group to further expand its existing trading and securities dealing business,'' he said. The original credit facility was made available to the group through an arrangement entered into by its parent CEH, which is under the direct control of the State Council.