Swire Pacific (HKG:0019, HKG:0087) said its Swire Pacific Finance unit was looking to raise HK$4.70 billion via a bond offering, according to a Tuesday filing with the Hong Kong bourse.
The bonds will convert into Cathay Pacific Airways (HKG:0293) shares based on an initial exchange price of HK$13.18 each. Assuming full conversion, the bonds would convert into 356.6 million Cathay Pacific shares representing 5.9% of the business.
The bonds mature on June 16, 2027, and do not bear interest.
Swire Pacific said it will use the proceeds for general working capital purposes.
Cathay Pacific's shares slumped nearly 7% in recent trade, while Swire Pacific's class A and B shares fell more than 1%.