New | China Merchants Land shares up over plan to raise US$290 million in convertible bonds
China Merchants Land shares rose after it issue convertible bond to raise US$290 million
Shares of China Merchants Land rose 3.7 per cent on Wednesday after it announced plans to raise US$290 million by issuing a five-year convertible bond to generate working capital.
The company shares opened higher at HK$2.48 at 9.30 am after its shares resumed trading on Wednesday. The shares were suspended from trading on Tuesday pending the release of an announcement in relation to inside information of the firm.
Upon full conversion into shares, the bondholders will own a 15.35 per cent stake in China Merchants Land.
The bonds will be converted into shares at HK$2.9875 each, 25 per cent higher than China Merchants Land’s HK$2.39 closing price on Tuesday.
The fixed-income product is paying an annual coupon rate of 0.5 per cent
