By P.R. Venkat
Midea Group plans to raise US$2.2 billion through zero-coupon convertible bonds, with proceeds to be used for global expansion.
The Chinese consumer goods company said it plans to raise 8.624 billion Hong Kong dollars each, equivalent to about US$1.1 billion each, via two convertible bonds maturing in 2027 and 2033.
Midea Group's 2027 bonds can be exchanged for 89.07 million H shares at an initial conversion price of HK$96.82 each, representing a 10.4% premium to the last closing price of HK$87.70.
The 2033 bonds can be exchanged for 74.50 million H shares at an initial conversion price of HK$115.76 each, a 32.0% premium to the last closing price of HK$87.70.
About 60% of the proceeds will be used for international expansion and to build offshore liquidity, with the remainder for general corporate purposes, the Hong Kong- and Shenzhen-listed company said Thursday.
Goldman Sachs, Citigroup, BofA Securities, and CICC are among the banks advising on the issuance.
Midea Group manufactures and sells home and commercial electrical appliances. Its business segments include large appliances, water appliances, kitchen and cooking equipment, heating, ventilation, electrical products and logistics services.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
05-06-26 2107ET
