Chinlink International, a Hong Kong-listed interior design company, has raised HK$300 million in a bond offering.
Half of the proceeds would be used to finance acquisitions and the rest for refinancing existing debt, the loss-making company said in a filing with the Hong Kong stock exchange late on Monday.
“The company is in preliminary discussions for a potential acquisition but no concrete terms or any agreement has/have been reached,” it said in a statement.
The bond would pay an annual interest rate of 8 per cent and had a two-year maturity, Chinlink said.
The firm, which issued a profit warning in March, has the right to repurchase the bond before maturity.
Its loss widened to HK$90.3 million for the year to March from HK$22.4 million in the same period a year earlier, owing to a surge in issuance of convertible bonds.