Hongfa Technology (SHA:600885) exercised its early redemption right for its convertible bonds after triggering the conditional redemption clause as the closing price was less than 130% of the current conversion price of 29.536 yuan per share.
Investors holding the convertible bonds may choose to redeem the bonds within the specified period or convert them to shares at 22.72 yuan apiece, the filing said.
The company issued 20 million convertible corporate bonds for 2 billion yuan with a six-year term.
The coupon rate is 0.3% in the first year, 0.5% in the second year, 1% in the third, 1.5% in the fourth, 1.8% in the fifth, and 2% in the sixth year, the filing said.
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