SINGAPORE'S sovereign wealth fund GIC has fully subscribed to the first tranche of US$35 million of the Green Dragon Gas (GDG) convertible bond issue.

GDG is an independent companies involved in the production and sale of CBM gas in China.

The bond is unsecured with a 7 per cent coupon, and is due in Dec 2015, convertible into ordinary shares at a conversion price of US$6.06 per share.

Green Dragon Gas plans to use the net proceeds to launch next year's drilling plan, and for working capital.

Mr Jason Triplitt, Head of European Equities, GIC Asset Management, said in a statement: "GIC sees long term value in the Coal Bed Methane (CBM) industry in China, GDG's extraction methodologies, gas resources and the further development of its licence blocks."