SAIC plans convertible bond issue

Chinese carmaker Shanghai Automotive Industry Corp (SAIC) plans to issue convertible bonds worth US$1.04 billion to finance the development of its own-brand cars, Shanghai Securities News reported (in Chinese). The bonds will be convertible into shares of the SAIC with attached warrants entitling the purchase of shares. The capital would be mainly channeled into the company's project to build its own-brand passenger cars, which would require US$2.83 billion in funding. The fund would also be used for commercial vehicle projects, mergers and acquisitions, capital injection of its financial company and the group's loan payment.