XTEP INT'L (01368) plans to issue 500 million Hong Kong dollars of convertible bonds.

XTEP INT'L (01368) announced that as of the date of this announcement, the outstanding principal amount of the 2025 convertible bonds is 500 million Hong Kong dollars. Assuming all outstanding 2025 convertible bonds are converted at an adjusted conversion price of 6.01 Hong Kong dollars per share (as disclosed in the announcement dated October 30, 2025), the outstanding 2025 convertible bonds will be convertible into approximately 83.1947 million shares. On January 30, 2026, the Company entered into a transaction agent agreement with a transaction agent. Pursuant to this agreement, the transaction agent has been appointed to assist the Company in collecting intentions from holders of the 2025 convertible bonds who are willing to sell their holdings to the Company. The eligible bondholders who accept the invitation to sell the 2025 convertible bonds will be entitled to receive the repurchase price equivalent to 100.50% of the outstanding principal amount of the 2025 convertible bonds, together with the accrued unpaid interest under the repurchase offer. As of the date of this announcement, the Company has obtained commitments from eligible bondholders through the transaction agent to sell 500 million Hong Kong dollars of the outstanding principal amount of the 2025 convertible bonds, equivalent to 100% of the outstanding principal amount of the 2025 convertible bonds. On January 30, 2026, the Company entered into a convertible bond subscription agreement with the agent, whereby the agent conditionally agrees to subscribe for or procure others to subscribe (either themselves or through their affiliates or delegates) and pay for 500 million Hong Kong dollars of bonds to be issued by the Company, subject to and in accordance with the terms of the convertible bond subscription agreement. The issue price of the bonds is 100% of the principal amount, with a face value of 2 million Hong Kong dollars per bond and its integral multiples. Based on a preliminary conversion price of 6.37 Hong Kong dollars per share and assuming full conversion of the bonds, the bonds will be convertible into up to 78.4929 million shares of new convertible bond shares, equivalent to approximately 2.80% of the Company's issued share capital as of the date of this announcement. The bonds are intended to be listed on the Vienna Stock Exchange. The net proceeds are expected to be approximately 492 million Hong Kong dollars. The Company plans to use the net proceeds from the issuance of the bonds for refinancing the outstanding 2025 convertible bonds.