China Agri-Industries to raise US$700 million for expansion

China Agri-Industries Holdings said it planned to raise about US$700 million via a share sale and bond issue to fund expansion of production capacity. The agricultural product producer and distributor said it would sell 178 million shares in a share placement at HK$8.75 (US$1.13) each, or a 7.89% discount to the previous close, raising about HK$1.56 billion (US$201 million). The company said it would use the proceeds from the issues to fund production capacity expansion and for working capital and general corporate expenses. China Agri-Industries is involved in biofuel, biochemical and grain processing and trading in China. (July 22, 2010)