C&D International Investment Group Ltd. plans to issue an approximately HK$3.00 billion perpetual convertible bond to repay loans from shareholders.
Under the terms of a Sept. 7 deal, the Chinese property developer conditionally agreed to issue the bond to Well Land International Ltd., a controlling shareholder of the company.
The bond will be issued at 100% of its principal amount, with a per-share initial conversion price and distribution rate set at HK$8.50 and 4.25% per annum, respectively.
Upon the full conversion of the bond, the company will issue up to 352,941,176 shares, representing about 48.03% of C&D International's issued share capital, as of Sept. 7.
C&D International said it will seek shareholder approval for the proposed issuance at a forthcoming extraordinary general meeting.