Dekon Food And Agriculture Group Class H ( (HK:2419) ) just unveiled an announcement.

Dekon Food and Agriculture Group has agreed to issue US$100 million of zero coupon convertible bonds due 2027 to international investors under its general mandate. The bonds, arranged through a group of global coordinators and bookrunners, are structured to be offered outside the United States in reliance on Regulation S.

The bonds can be converted into H shares at an initial price of HK$54.08 per share, representing a modest premium to recent market prices. Assuming full conversion, the issue would create about 14.5 million new H shares, equal to roughly 9.2% of the company’s H-share capital and 3.73% of total share capital, implying moderate equity dilution in exchange for an estimated US$99.7 million in fresh funding.

The conversion shares will be fully paid and rank pari passu with existing H shares, with an estimated net issue price of HK$53.92 per conversion share. The transaction underscores the company’s use of convertible financing to bolster its capital structure while limiting immediate cash interest costs, which may support future growth initiatives and liquidity for stakeholders.