Yongda Auto Plans to Issue RMB 1.0 billion Convertible Bonds

Jun 26, 2014 20:45 JST

Source: China Yongda Automobiles Services Holdings Limited

- The First Convertible Bonds Publicly Issued by Chinese Automobile Sales and Service Provider Listed on Main Board of HKEx
- Attracts Quality and Diversified Investors and Supports the Future Development Opportunities

HONG KONG, Jun 26, 2014 - (ACN Newswire) - China Yongda Automobiles Services Holdings Limited ("Yongda Auto" or the "Company" and, together with its subsidiaries, the "Group", stock code: 03669.HK), a leading passenger vehicle retailer and comprehensive service provider in China, is pleased to announce that it plans to issue five-year Convertible Bonds in an aggregate principal amount of RMB1.0 billion. The Company has entered into the Subscription Agreement with DBS Bank Ltd., the sole global coordinator, and DBS Bank Ltd. and UBS, the Joint Lead Managers.

The company is to issue the Convertible Bonds at reasonable cost with the term of five years, and the Bonds bear interest at the rate of 1.5% per annum. The Initial Conversion Price is HK$7.958 per Share, which represents a premium of approximately 15.33% over the closing price of HK$6.90 per Share (the Conversion Price will not be adjusted if the distribution of cash dividend does not exceed 30% of the net profit attributable to owners of the Company) on 23 June 2014 (the last trading day before the Subscription Agreement was signed). Assuming full conversion of the Bonds at the Initial Conversion Price, the Bonds will be convertible into approximately 158,259,610 Shares, representing approximately 10.69% of the issued share capital of the Company and approximately 9.66% of the enlarged issued share capital of the Company. The estimated net proceeds from the issue of the Bonds, which amount to approximately RMB977 million, will be used for establishing and acquiring 4S dealerships and working capital purposes.

It is reported that the Convertible Bonds issued by the company is the first Convertible Bonds publicly issued by Chinese automobile sales and service provider listed on main board of HKEx, and it is also in line with the Company, which could enlarge and diversify the company's shareholder base, and introduce the optimal operation methods in the world in terms of business strategies, corporate governance and etc., so as to realize adding value to the Company. Meanwhile, the raised capital through issuing Bonds could help the company to increase its operation capital and strengthen its capital base and financial status, so as to support its further development opportunities.

Source: China Yongda Automobiles Services Holdings Limited
Sectors: Daily Finance, Daily News