China's Geely to issue 250 mln dlrs in bonds: report
China's Geely Automobile Holdings, whose parent is looking at buying Volvo from US car giant Ford, plans to issue 250 million dollars in convertible bonds and warrants, a report said Thursday.
"The financing plan is unrelated to the bid for Volvo," an unnamed executive was quoted as telling the China Business News, adding the size of the issue was not enough to match the capital needed for that takeover.
A company spokeswoman told AFP a bond issue was planned but said she could not comment on the amount pending a formal announcement.
Analysts said the proceeds would likely be used to expand the company's production capacity, according to the report.
Hong Kong-listed Geely Automobile said last week its parent Geely Holding Group was mulling a bid for Ford's money-losing Swedish unit in partnership with another unspecified backer to help fund the deal.
The company declined to confirm reports that independent Geely was seeking to team up with a state investment firm.
The company said its shares have been suspended in Hong Kong since Wednesday while awaiting the formal announcement on the bond and warrants issue.
Copyright 2009 AFP Asian Edition
