On 10 July, the company issued successfully a total of 40,000,000 A share convertible corporate bonds. With the approval of the CSRC and via delicate organizations and arrangements, the company provided all the existing A shareholders of the company the entitlement to participate in and subscribe for the Dongfang Convertible Bonds, the remaining portion of the preferential issuance of Dongfang Convertible Bonds to the existing A shareholders and those which have been given up by the existing A shareholders will be subscribed through the combination of offline placement to institutional investors and online issuance through the online pricing system of Shanghai Stock Exchange. During the issuing period, Dongfang Convertible Bonds has attained active purchase with valid subscriptions of about RMB 296 Billion,the frozen capital of RMB 91.8 Billion offline and online and the success rate of 1.278%, which marked the outstanding success of DEC in the public issuance of A share convertible bonds.

The reference is made to the announcements dated 30 October 2013, and was approved by the Annual General Meeting on 19 December 2013; and the announcement regarding the acquisition of approval from the CSRC for the public issuance of convertible corporate bonds was finally attained on 30 June. The company shall issue a total of 40,000,000 A share convertible corporate bonds with a nominal value of RMB100 each (the “Dongfang Convertible Bonds”), amounting to RMB 4 Billion in aggregate. The Dongfang Convertible Bonds have a term of six years from the date of the issuance, which commences from 10 July 2014 and ends on 10 July 2020 and will bear a coupon rate of 0.5% in the first year, 0.8% in the second year, 0.8% in the third year, 1.4% in the fourth year, 2.0% in the fifth year and 2.0% in the sixth year. The Dongfang Convertible Bonds adopt payment of interest annually as its interest payment method; interest accruing from the first date of issuance of the Dongfang Convertible Bonds. The initial conversion price of the Dongfang Convertible Bonds shall be RMB 12 per A share and the conversion period will commence on the first trading day immediately folloing the expiry of 6 months after the date of the completion of the issuance of the bonds and ends on the maturity date of the bonds.

For successfully publicizing the Bonds, Chairman Mr. Si Zefu and President Mr. Wen Shugang of the company respectively led a team in Shanghai, Shenzhen and Beijing for on-the-spot roadshow of the activity, meanwhile, the webcast roadshow was also held on CSRC Online Roadshow Center on 9 July. The roadshow teams carried out extensive communications with over 40 institutional investors, embracing general recognitions and laid solid foundations for the success of issuance.
 
To further promote the “go global” and “three shifts” strategy, whereas realizing the core product technological breakthrough, the total issue of A share convertible bonds shall not exceed RMB 4 Billion. A share convertible bonds will be issued at par with a nominal value of RMB 100 each, the term of which will be six years from the date of issue while the interest rate will be no more than 2%. The proceeds from the proposed issue of A share convertible bonds will be invested in the 7 projects, 3 for overseas EPC and BTG projects and others for research and development capacity promotion projects.
 
The successful issuance of A share convertible bonds is the biggest ever financing project in the capital market of the year and shall be reckoned as the greatest net financing project of DEC towards overseas market. The fixation of EPC and BTG projects as the equity investment is a creative attempt of the company in the capital market and the successful issuance of the project can be regarded as a milestone of financing in the capital market, laying sound foundations for DEC in subsequent market operations.

 

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