Unit of Charoen Pokphand Foods to offer US$300m exchangeable bonds in Singapore

The logo of Charoen Pokphand Foods is pictured at a food hall in Bangkok, Thailand.
The logo of Charoen Pokphand Foods is pictured at a food hall in Bangkok, Thailand. PHOTO: REUTERS

BANGKOK (REUTERS) - Thailand's Charoen Pokphand Foods Pcl said on Friday (Sept 16) its CP Foods Holding Ltd subsidiary has priced and offered US$300 million (S$408.6 million) of exchangeable bonds to foreign investors and has applied for the bonds to be listed on the Singapore Exchange by Sept 26.

The bonds, which mature in 2021, pay a coupon of 0.50 per cent per annum, Charoen Pokphand Foods said in a statement. It gave no details of how it plans to use the funds raised from the bond offer.

Bond holders have the option to convert the bonds into common shares of CP All Pcl, which are held by CP Foods Holding, or redeem them through CP Foods Holding on Sept 22, 2018, the statement said.

About 135.29 million shares of CP All are set to be exchanged, it said.

On the exercise of exchange rights, the bond holders will initially be entitled to receive 90,190 CP All shares for each US$200,000 principle amount of the bonds.

Charoen Pokphand Foods' unit will redeem the bonds on Sept 22, 2021 at 110.58 per cent on their principle amount unless the bonds are previously exchanged or redeemed.

Charoen Pokphand Foods is Thailand's largest meat and feed producer and has an interest in CP All, the country's largest convenience store operator.