Beijing Enterprises plans $281 mln bonds

HONG KONG, April 27 (Reuters) - Beijing Enterprises Holdings (0392.HK) said on Monday it planned to issue up to $281 million worth of guaranteed convertible bonds due 2014, raising capital to fund expansion of natural gas and water related businesses.

The Chinese conglomerate said it would issue an initial $230 million worth of bonds with an option to sell a further $51 million bonds to third party investors.

The bonds, which carry an interest rate of 2.25 percent per annum, are convertible into up to 50 million shares, or 4.21 percent of the enlarged share capital of the company, at HK$43.5 each. The conversion price represents about a 22.54 percent premium over the closing price of HK$35.50 per share last Friday.

About 80 perent of the proceeds will be used to expand pipeline transmission for natural gas and water related businesses, and to fund merger and acquisitions on gas and water businesses. The remainder 20 percent will be used for working capital, the company said.

Nomura International (Hong Kong) Limited and Credit Suisse (Hong Kong) Limited are lead managers of the deal.

For details please click here (US$1=HK$7.75) (Reporting by Donny Kwok; editing by Jacqueline Wong)