Binhai Investment Company Issues HK$ 310,000,000 1% Convertible Bonds Due 2016

Friday, 26 July 2013, 21:00 HKT/SGT

Attracts Significant Investors, Optimizes Equity Structure and Promotes Corporate Governance

HONG KONG, July 26, 2013 - (ACN Newswire) - Binhai Investment Company Limited ("Binhai Investment" or the "Company", SEHK:8035) is principally engaged in the construction of gas pipeline networks, provision of connection services, sale of liquefied petroleum gas ("LPG") and piped gas. The board is pleased to announce that the Company and the placing agents and each of the subscribers entered into the Placement and Subscription Agreement, pursuant to which the Company has conditionally agreed to the issue of HK$310,000,000 1.0% Convertible Bonds due 2016. The Bonds will be convertible into ordinary shares of HK$0.01 each in the issued and paid up share capital of the Company at an initial Conversion Price of HK$0.3690 per Share (subject to adjustments).

The initial Conversion Price of HK$0.3690 per Share represents a discount of approximately 5.38% over the closing price of HK$0.3900 per Share as quoted on the Stock Exchange on 24 July 2013 (being the last trading day before the Placement and Subscription Agreement was signed); and a discount of approximately 6.11% to the average closing price of approximately HK$0.3930 per Share as quoted on the Stock Exchange for the five consecutive trading days up to and including 24 July 2013.

Assuming full conversion of the Bonds at the initial Conversion Price of HK$0.3690 per Share, the Bonds will be convertible into 840,108,401 Shares, representing approximately 14.02% of the issued ordinary share capital of the Company as at the date of this press release and approximately 12.30 % of the enlarged issued ordinary share capital of the Company (disregarding any new Shares to be issued upon conversion of the Convertible Preference Shares)or approximately 6.72% of the enlarged issued ordinary share capital of the Company (including such additional Shares to be issued upon conversion of the Convertible Preference Shares). The Conversion Shares will be fully-paid and rank pari passu in all respects with the Shares then in issue on the relevant conversion date.

Such Subscribers are independent third parties, which possess confidence in the Company's business vision and subscribe the Company's conversion bonds through themselves or their respective subsidiary (subsidiaries) , including China Everbright Limited, China Everbright Asset Management Limited, CCB International Asset Management Limited, Guotai Junan Securities(Hong Kong) Limited, Fu Wah(China) Limited, and Delta Electronics Capital Company. The placing agents includes CCB International Asset Management Limited and Guotai Junan Securities (Hong Kong) Limited.

The estimated net proceeds from the issue of the Bonds amount to approximately HK$300,000,000, which are intended to be used by the Company for the repayment of current borrowings and for working capital purposes. The Company will apply to the Stock Exchange for the listing of, and permission to deal in, the Conversion Shares to be allotted and issued upon conversion of the Bonds.

Since its resumption of trading, Binhai Investment has maintained rapid growth in main business income and net profit for four consecutive years. The Company has made remarkable achievements in respect of high pressure pipeline network layout and market expansion in Binhai New Area, a strategically important region where the Company conducts its business. The Company attracts independent and significant investors who share its business vision and can add considerable value by bringing international best practices in business strategy and corporate governance. The issue of the Bonds also represents an opportunity to enlarge and diversify the shareholder base of the Company, to improve the liquidity position of the Company, to reduce the financing costs of the Company.

About Binhai Investment Company Limited

Binhai Investment Company Limited is principally engaged in the provision of connection services for its gas pipeline networks and sale of gases in the PRC. The Company listed on the GEM board in Hong Kong in March 2000 (Stock code: 08035). Its market coverage reaches over 6 provinces and 2 cities. Tianjin TEDA Investment Holding Co., Ltd., a state-owned enterprise established in the PRC is the ultimate controlling shareholder of the Company. With the benefits of the abundant resources in Tianjin, the economic center in Bohai Rim area, and leveraging on the rapid development in Binhai New Area, the Company ties in with the thriving development in Binhai New area with a brand new image to strengthen its principal operation, gas business, expand business scale and foster organic growth. For detailed information of the Company, please visit the website of the Company at http://www.binhaiinv.com/.

Topic: Issue of Stocks/Bonds Sectors: Daily Finance
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