Central China Real Estate raises funds from FountainVest and West Hill

Henan-based property developer Central China Real Estate has raised HK$765 million ($99 million) of private equity through an issue of convertible bonds and warrants to FountainVest Partners (Asia) and West Hill.

FountainVest will buy HK$687 million of bonds, while West Hill will buy HK$78 million of bonds. On conversion of the bonds the investors will own a 10.98% stake in Central China. The bonds convert within six months of issue at a price of HK$3.10 each, which represents a premium of 29.7% over the closing price of Central China shares on the Hong Kong Stock Exchange on August 4 and a similar premium over the volume weighted average closing price for the last five and 10 consecutive trading days up to August 4. The bonds have a 4.9% coupon and an 8% yield to maturity.