CIFI Holdings, one of the top 15 real estate developers in China, has announced that it will issue its first zero-coupon convertible bonds, which has received overwhelming response from investors.
The group will issue a total of HK$2.79 billion zero-coupon convertible bonds which will mature in 2019. The conversion price will be HK$9.30 per share, 30 per cent conversion premium to the latest closing price. The net proceeds from the bonds will be used to refinance its existing indebtedness and general working capital.
The issue offers the group low-cost financing and potentially strengthening its equity base at an attractive price. Morgan Stanley, Credit Suisse and Haitong International are the joint bookrunners for the issue.
Headquartered in Shanghai, CIFI is one of China's top 15 real estate developers. It principally focuses on developing high-quality properties which target the end-users in first-, second- and third-tier cities in China. CIFI develops various types of properties, including residential flats, office buildings and commercial complexes.