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AviChina Industry & Technology Company Ltd. is hoping to raise funds for AVIC Avionics.
“The total amount of proceeds from the Issuance of Convertible Corporate Bonds will be [2.4 billion Yuan],” AviChina said in a document filed to the Hong Kong stock exchange last week, “all of which, after deducting the issue cost, are expected to be used in the industrialization projects relevant to the electronic business of AVIC Avionics and the supplementation of its working capital.”
AviChina said it hopes to raise the nearly $369.8 million with bonds that have a six-year term from the Dec. 25, 2017, issue date. As a result of bonds turning to shares, AviChina’s shareholder ratio in AVIC Avionics would be diluted.