Hong Kong's New World greenshoe exercise raises convertibles total to RMB 2.8 billion

By Susanna Moon

Chicago, June 26 - Hong Kong's New World China Land Ltd. said underwriters fully exercised an over-allotment option for RMB 300 million on its offering zero-coupon guaranteed convertible bonds due 2012.

The greenshoe exercise brings the total raised to RMB 2.8 billion.

The issue is expected to settle June 28.

On May 4, the company priced RMB 2.5 billion of zero-coupon convertibles to yield 2.5% with an initial exchange premium of 36.1% over its May 3 close.

The bonds were offered at par. They were issued by wholly owned subsidiary New World BVI but are exchangeable into New World China's Hong Kong-listed common stock.

The redemption price is 103.81%. The initial conversion price is HK$8.044.

Proceeds will be used for working capital and for developing a property in Beijing.

Deutsche Bank is the bookrunner of the Regulation S offering.

New World China is a Hong Kong-based property developer.

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