-- Midea (SHE:000333, HKG:0300) proposed to issue HK$8.62 billion of zero-coupon convertible bonds due 2027 and HK$8.62 billion of zero-coupon convertible bonds due 2033, according to a Thursday Hong Kong bourse filing.
The 2027 bonds carry an initial conversion price of HK$96.82 per H- share, representing a 10.4% premium to Wednesday's closing price, while the 2033 bonds have an initial conversion price of HK$115.76 per H-share, a 32% premium.
Assuming full conversion, the 2027 bonds would convert into about 89.1 million Hong Kong shares, while the 2033 bonds would convert into about 74.5 million shares.
Net proceeds from the offerings are expected to total about HK$17.17 billion.
The appliance manufacturer plans to use about 60% of the proceeds for international expansion and offshore liquidity enhancement, with the remainder for general corporate purposes.
The bonds are expected to be issued on May 13 and listed on the Vienna MTF operated by the Vienna Stock Exchange.