Shanghai: Rongsheng Heavy Industries announced that it has entered into a subscription agreement with Vogel Holding Group for the issue of convertible bonds at an aggregate amount of HK$1bn. The initial conversion price is HK$1.07 per share.
Rongsheng had announced the issue of HK$1bn convertible bonds to Star Team Enterprises on May 1.
Vogel Holding Group is an affiliate company of China’s IT giant Shi Yuzhu, one of China’s richest men.
Rongsheng said the bond issue will improve the liquidity position and reduce the financing costs of the group. Rongsheng intends to use about 65% of the proceeds for the replenishment of general working capital and the remaining 35% will be used for the repayment of loans. [08/05/14]