Raise 6.5 billion! Xi Yu Technology lands on offshore bond market

On July 16, the leading domestic large-scale head enterprise Xiyu Technology officially entered the offshore bond market. According to the system, the company successfully issued 6.5 billion Hong Kong dollars of guaranteed convertible bonds, with an initial conversion price set at 335 Hong Kong dollars, a premium of 25% compared to the reference price of 268 Hong Kong dollars. According to the prospectus, the bonds were arranged by Morgan Stanley and UBS, with a coupon rate of 2.75% per year, paid every six months, and a redemption price of 102.75% of the principal at maturity in 2027. Prior to this, Xiyu Technology announced on the day the lock-up period expired that it would issue 35.6 million new shares at 268 Hong Kong dollars per share to raise approximately 9.5 billion Hong Kong dollars. It also announced the issuance of 6.5 billion Hong Kong dollars in zero-coupon convertible bonds, raising a total of approximately 16 billion yuan. It is worth noting that the trigger threshold for the redemption right of the convertible bonds is 120%, while the common trigger threshold overseas is 130%, and the redemption right may be exercised after 20 trading days of issuance, with the trigger condition being any 10 days within the 20 trading days. The fixed income team at China International Capital Corporation said that this condition is relatively friendly to the issuer.