CHINAHONGQIAO(01378) plans to issue $10.2 billion in zero-coupon convertible bonds for settlement in USD and due in 2027, along with a simultaneous repurchase.

CHINAHONGQIAO (01378) announced that on April 27, 2026 (after trading hours), the company and its subsidiary guarantors, and the agent, entered into a convertible bond subscription agreement. According to this, the company has agreed to issue, and the agent has agreed (individually and not jointly) to use their best efforts to subscribe and pay or cause the subscription and payment of the convertible bonds. The convertible bonds will be issued at a preliminary principal amount of RMB 10.2 billion. The preliminary conversion price (subject to adjustment) is HKD 43.90, representing a premium of approximately 25.3% over the closing market price of HKD 35.04 per share on April 27, 2026 (the date of the convertible bond subscription agreement) on the Stock Exchange of Hong Kong. Assuming the convertible bonds are converted at the preliminary conversion price of HKD 43.90 per share, the convertible bonds will be converted into approximately 267 million shares of conversion shares (subject to adjustment), equivalent to approximately 2.6% of the enlarged issued share capital of the company (assuming no other changes in the issued share capital of the company). After deducting related expenses, the net proceeds from the issuance of the convertible bonds are estimated to be approximately USD 1.469 billion. The company plans to use the net proceeds from the issuance of the convertible bonds for the purchase and storage of production raw materials such as bauxite, refinancing existing debt, investing in overseas projects, future share buybacks, and general corporate purposes.