MMG to issue $500m convertible bonds for offshore debt refinancing

MMG Limited has proposed to issue $500,000,000 zero coupon convertible bonds due 2030, with an initial conversion price of HK$8.40 per share. The subscription agreement was entered into with managers on September 29, 2025. The bonds will be issued at 100.00% of their principal amount, with each bond having a denomination of $200,000. The company intends to list the bonds on the Hong Kong Stock Exchange.

Assuming full conversion, the bonds will be convertible into approximately 463,113,095 shares, representing about 3.81% of MMG’s total issued share capital as of the announcement date, and 3.67% of the enlarged share capital after full conversion. The conversion price represents a premium of approximately 34.62% over the closing price of HK$6.24 per share on September 29, 2025.

The net proceeds, estimated at approximately $494,000,000, will be used to refinance the group’s offshore indebtedness. This move is expected to lower the company’s ongoing interest expense and improve cashflows, contributing to a balanced gearing position. The issue of conversion shares falls within the general mandate approved by shareholders on May 22, 2025.