China Avionics Systems, a listed subsidiary of state-owned Aviation Industry Corporation of China (AVIC), has issued convertible corporate bonds to raise CNY2.4 billion (USD367 million) to support industrial expansion, it was announced on 27 December.
The AviChina Industry & Technology Company Limited (AviChina) said in a filing to the Hong Kong stock exchange that the bonds have been acquired by AviChina, AVIC, and its subsidiary AVIC Avionics Systems. AviChina and AVIC Avionics Systems are also subsidiaries of AVIC.
AviChina said the bond sale will result in its holding in China Avionics Systems declining from 43% to 40%. It added that funds generated by the sale will be used for industrialisation projects relevant to its electronics business and to supplement working capital.
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