China Flavors And Fragrances Company Limited (SEHK:3318) announced that it has entered into subscription agreement for private placement of convertible bonds for gross proceeds of $40,000,000 (HKD 310,345,000) on June 30, 2016. The bonds will be issued to new investor Great Wall Pan Asia International Investment Limited. The convertible bonds constitute direct, unconditional and unsubordinated obligations of the company. The bonds will mature on the second anniversary of the issue date. The bonds bear fixed interest rate of 7% per annum and is payable every six months. The bonds are convertible at HKD 2.915 per share subject to adjustments. The bonds are convertible into a maximum of 107,032,590 shares. The company may redeem the outstanding principal amount at any time after the date falling 6 months after the issue date by giving a redemption notice of not less than 10 business days to the bondholder to early redeem the outstanding principal amount of the convertible bonds. Upon the conversion of bonds, the investor shall hold 13.69% stake in the company. The transaction is subject to various conditions including approval from board, approval from stock exchange among others. The completion will occur on the third business day after all conditions have been satisfied. The conversion has been done through www.oanda.com as on June 30, 2016.