China Hongqiao plans $300m convertible bond issue

China Hongqiao Group (HKEX:1378) announced plans to issue US$300 million in 1.50% convertible bonds due in 2030. The company intends to use the net proceeds, estimated at US$294.58 million, to refinance existing offshore debt and for general corporate purposes. The initial conversion price is set at HK$20.88 per share, representing a premium of 38.3% over the closing price on March 17, 2025. Concurrent with the bond offering, the company will repurchase 20,548,000 shares at HK$14.60 per share. The company plans to list the bonds on the Hong Kong Stock Exchange and is seeking shareholder approval. Joint lead managers, including UBS and CMB International Capital, are facilitating the offering, which is subject to customary closing conditions.