Imperial Pacific International (IPI) is hoping to raise up to HK$300 million via the placement of bonds.
In a filing to the Hong Kong Stock Exchange on Monday, IPI said that capital raised would be used for “general corporate purposes” but didn’t specify any particular allocation for construction of its troubled Saipan integrated resort. The company was recently granted a two-and-a-half year deadline extension for completion of Imperial Pacific Resort until February 2021.
According to IPI, the bonds will be issued in denominations of HK$500,000 each with the company looking for “independent professional, institutional or private investors … whose ultimate beneficial owners are independent third parties.”
The bonds will mature in four tranches, with the first coming three years after date of issue and paying interest of 5.25% per annum. The remainder, coming four years and six months, five years and six months and seven years and six months, will pay interest at 6% per annum.
IPI’s latest fund raising exercise comes just four months after it placed convertible bonds worth HK$46 million for completion of Phase 1 of Imperial Pacific Resort.
The company said at the time that, “The Directors consider raising funds by issuing convertible bonds is justifiable which represent an opportunity for the company to enhance its working capital and strengthen its capital base and financial position. The directors consider that the issue of the convertible bonds is an appropriate means of raising additional capital for the company since it will not have an immediate dilution effect on the shareholding of the existing shareholders.”