PRC agricultural company raises funds

Chaoda Modern Agriculture (Chaoda), a PRC modern agricultural enterprise listed on the Hong Kong Stock Exchange, has raised US$350 million through a combination of an international issue of convertible bonds and a share placement.

Chaoda issued US $200 million 3.7 per cent convertible bonds due to mature in 2015 and a top-up placing of approximately US$150 million of shares. The convertible bonds enjoyed the benefit of upstream guarantees from, and a security package comprising share charges over, certain offshore subsidiaries of Chaoda.

Clifford Chance advised Citi as placement agent in this transaction. Hong Kong-based Connie Heng led the capital markets team while Amy Lo advised on the corporate aspects. A separate team that included Joan Janssen in Singapore and Matt Fairclough in Hong Kong acted for Citi as trustee and security trustee for the bonds offering.