Sept. 25 (Bloomberg) -- Shenzhen Expressway Co., a toll-road operator in southern China, plans to sell 1.5 billion yuan ($200 million) of bonds to fund the construction of a new highway.
The six-year bonds, to be sold on Oct. 9, will come with call warrants for shares, the company said in a statement to Shanghai's stock exchange today. Bondholders will receive 7.2 call warrants for each bond they hold, the company said.
The warrants' option price was set at 13.85 yuan per share, Shenzhen Expressway said. The company's Shanghai-listed shares rose 3.6 percent to 13.10 yuan at 10:31 a.m. today. The Hong Kong-listed shares fell 1 percent to HK$7.62 yesterday before being suspended.
Shenzhen Expressway follows Chinese companies including Shanghai Automotive Co. and ZTE Corp. in raising capital by selling bonds linked to equity to make them more attractive to investors. The equity link reduces the cost of selling debt and enables companies to raise money again through the share sales.
The highway that will be financed by the bond sale's proceeds will be in Shenzhen, a southern Chinese city that adjoins Hong Kong.
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