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China Merchants Holdings (Pacific) to issue HK$1.163 billion Convertible Bonds due 2017

From: CM Group website

SINGAPORE, 17 September 2012 – Mainboard listed China Merchants Holdings (Pacific) Limited (“CMHP” or the “Group”) today announced that it will issue an aggregate principal amount of HK$1.163 billion convertible bonds due 2017 (credit enhanced until 2015) and has appointed DBS Bank as the sole bookrunner and lead manager of the Issue.

The bonds, which have the benefit of an irrevocable standby letter of credit, will bear interest at the rate of 1.25% per annum. The initial conversion price has been set at a 18.31% premium over the closing price of S$0.71 per CMHP share on 17 September 2012. The bonds are convertible into new CMHP ordinary shares at an initial conversion price of S$0.84 per new share.Upon full conversion of the bonds, a total of 218,548,058 new CMHP ordinary shares will be issued, representing 30.4% of CMHP's existing issued share capital as at 17 September 2012.

CMHP intends to use the net proceeds of approximately HK$1.134 billion for funding the acquisition of Ningbo Beilun Port Expressway in China which was announced by the Company on 6 August 2012, funding future acquisitions, general corporate purposes and/or refinancing outstanding indebtedness.

“CMHP is constantly seeking new acquisitions as part of our growth strategy. The issue of the convertible bonds represents an additional source of growth capital for the Company to pursue toll road opportunities in China. We are pleased with the outcome of the convertible bond issue, which was attractively priced and well received," said CEO Mr Jiang Yan Fei.

The issue of the bonds is subject to in-principle approval from the Singapore Exchange Securities Trading Limited for the listing of and quotation for the bonds and the new shares to be issued on the conversion of the bonds.

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