Dekang Agriculture and Animal Husbandry (02419) plans to issue US$100 million zero-interest convertible bonds with an initial conversion price premium of about 5.00%

According to the Zhitong Finance App, Dekang Agriculture and Animal Husbandry (02419) announced that on July 24, 2026 (after the trading period), the company signed a subscription agreement with the operator. The company plans to issue US$100 million zero-interest convertible bonds due in 2027. The initial conversion price of the bonds was HK$54.08 per H share, a premium of about 5.00% over the final closing price of HK$51.50 per H share reported on the Hong Kong Stock Exchange on July 24, 2026.

The Board believes that issuing bonds provides the Group with an appropriate opportunity to raise capital to meet its repayment arrangements for bank loans maturing within one year and working capital requirements in the daily business process. The net proceeds are intended to repay a number of outstanding short-term bank loans and medium- to long-term bank loans maturing within one year, and to finance the Group's procurement of feed, raw materials and other production inputs (mainly feed ingredients, veterinary drugs, vaccines, disinfectants and other animal health products) in the course of its daily business. Such procurement is necessary for the daily operation of the Group's livestock and poultry farming business.