Shanghai International Port (Group), operator of China's busiest port, plans to sell 3 billion yuan (HK$3.09 billion) of bonds to fund the construction of facilities for handling cars, coal and other raw materials.
The three-year bonds will come with call warrants that confer the right to buy shares, the port operator said in a Shanghai stock exchange statement yesterday. It did not say how many warrants would be linked to the bond sale.
Shanghai Port follows other Chinese companies including Shanghai Automotive and ZTE Corp in raising capital by selling bonds linked to equity to make them more attractive to investors. The equity link reduces the cost of selling debt and enables companies to raise money again through share sales.
"The company can raise funds twice in this way," said Ji Lijun, an analyst at Shanghai Securities. "It's a popular practice among China's listed companies and has proven helpful in boosting share prices as well."
Shanghai Port's shareholders will meet on September 12 to vote on the proposed bond sale, the company said. Its shares rose 1.1 percent to 10.21 yuan in Shanghai yesterday. The stock has gained 46 percent this year.
Shanghai Port's first-half net income was 1.8 billion yuan, or 0.087 yuan a share, it said in a separate statement. Sales were 7.6 billion yuan. The company did not provide year- earlier figures because it listed in October.
First-half container traffic surged 24 percent to 12.5 million, and total cargo volume rose 21 percent to 174 million tonnes. The company aims to move 25 million cargo boxes this year and to surpass Singapore as the world's busiest container port next year.
"Shanghai Port's business is well supported by increasing exports from its neighboring cities and provinces," Ji said. "The company will continue to benefit as local factories sell more goods overseas."
Annual container volume at China's ports may rise to 130 million boxes by 2010 from 85.9 million last year, according to the Ministry of Communications.
ZTE, China's biggest publicly traded phone-equipment maker, plans to raise 4 billion yuan selling convertible bonds to help fund the development of products that use a Chinese high-speed mobile technology, it said on August 17.
Shanghai Auto, China's largest carmaker, plans to sell as much as 8 billion yuan of six-year bonds linked to call warrants, it said on July 25.
The three-year bonds will come with call warrants that confer the right to buy shares, the port operator said in a Shanghai stock exchange statement yesterday. It did not say how many warrants would be linked to the bond sale.
Shanghai Port follows other Chinese companies including Shanghai Automotive and ZTE Corp in raising capital by selling bonds linked to equity to make them more attractive to investors. The equity link reduces the cost of selling debt and enables companies to raise money again through share sales.
"The company can raise funds twice in this way," said Ji Lijun, an analyst at Shanghai Securities. "It's a popular practice among China's listed companies and has proven helpful in boosting share prices as well."
Shanghai Port's shareholders will meet on September 12 to vote on the proposed bond sale, the company said. Its shares rose 1.1 percent to 10.21 yuan in Shanghai yesterday. The stock has gained 46 percent this year.
Shanghai Port's first-half net income was 1.8 billion yuan, or 0.087 yuan a share, it said in a separate statement. Sales were 7.6 billion yuan. The company did not provide year- earlier figures because it listed in October.
First-half container traffic surged 24 percent to 12.5 million, and total cargo volume rose 21 percent to 174 million tonnes. The company aims to move 25 million cargo boxes this year and to surpass Singapore as the world's busiest container port next year.
"Shanghai Port's business is well supported by increasing exports from its neighboring cities and provinces," Ji said. "The company will continue to benefit as local factories sell more goods overseas."
Annual container volume at China's ports may rise to 130 million boxes by 2010 from 85.9 million last year, according to the Ministry of Communications.
ZTE, China's biggest publicly traded phone-equipment maker, plans to raise 4 billion yuan selling convertible bonds to help fund the development of products that use a Chinese high-speed mobile technology, it said on August 17.
Shanghai Auto, China's largest carmaker, plans to sell as much as 8 billion yuan of six-year bonds linked to call warrants, it said on July 25.
