De-Kun Livestock (02419) Prices $100M Convertible Bonds at 5% Premium on July 26

According to announcement, De-Kun Livestock (02419) on July 26 priced $100 million of zero-coupon convertible bonds due 2027, marking the company's first refinancing since its December 2023 listing. The initial conversion price was set at HK$54.08 per H share, a 5% premium to the closing price of HK$51.50 before the announcement.

Net proceeds of approximately $99.7 million will be allocated as follows: 40% to repay bank loans due within one year, 30% to purchase feed, and 30% for acquisition of raw materials and other production inputs. The company cited its strong financial position, with 2025 operating cash flow of 25.31 billion yuan and cash reserves approaching 10 billion yuan, supporting the strategic refinancing to optimize debt structure by replacing higher-cost domestic bank loans with lower-cost dollar-denominated debt.