Beijing Datang Power plans $300 million convertibles

New York, March 27 - Beijing Datang Power Generation Co. Ltd. said it is looking to sell $300 million of convertibles bonds.

Proceeds will be used to finance Beijing Datang Power's foreign exchange requirements including funding purchase of up to $220 million of imported equipment for power generation plants. The remainder would be used to refinance the company's current foreign exchange borrowings.

Beijing Datang said the offering is intended to lower the company's overall cost of funds by taking advantage of current low interest rates.

The securities would be convertible into class H shares of the company.

Beijing Datang Power said the offering would be to professional and institutional investors and the securities would be listed on the Luxembourg Stock Exchange. Sales in the U.S. would be under Rule 144A.

No further details of the issue were disclosed in the Chinese company's announcement.

The issue is still subject to approval by shareholders at a meeting on May 10 and Chinese regulators and other conditions.

Beijing Datang said that at the maximum issue size and assuming the conversion price was equal to HK$2.985, the average closing price of H shares for the five trading days ending March 22, current H shareholders would see their stake diluted to 24.1% from 27.7% on conversion of the bonds.

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