New | Shunfeng to place HK$2.8b in convertible bonds to expand solar business

Shunfeng Photovoltaic International plans to place up to HK$2.8 billion of convertible bonds to finance the expansion of its solar power business, the Hong Kong-listed firm announced on Wednesday.

The company agreed on Tuesday to place to independent third parties up to 300,000 convertible bonds at an initial conversion price of HK$7 each, equivalent to a principal amount of HK$2.1 billion. The annual interest rate of the bonds is 5 per cent. The placing is expected to be completed by November 28.

On the same day, it also agreed to place to controlling shareholder Cheng Kin-ming up to 100,000 convertible bonds at an initial conversion price of HK$7 each, equivalent to a principal amount of HK$700 million. This placing is expected to be completed by January 31, 2015.

The placing agent for both issues is Partners Capital Securities, an associate company of Cheng.

Shares in Shunfeng closed at HK$6.87 on October 28.

“The company intends to apply all the proceeds from the convertible bonds to fund the company’s capital expenditure for its existing solar power projects as well as business expansions [including but not limited to acquisitions] and for general corporate purposes,” the firm said.