China Shanshui Cement Group Limited (SEHK:691) announced that it has entered into a subscription agreement for private placement of convertible bonds for gross proceeds of $320,700,000 on August 30, 2018. The bonds constitute redeemable, unconditional, unsecured, and unsubordinated obligations. The transaction will include participation from minimum of six investors. The bonds carry a fixed interest rate of 20% per annum which shall be payable by the company in arrears in on February 7 and August 7 of each calendar year after issuing of the convertible bonds. The bonds will mature in three years from the issuance date. The bonds will be issued at par value. The bonds are issued in registered form and will be in denominations of $100,000, and integral multiples of $100,000 in excess thereof. The bonds are fully convertible into 397,688,390 common shares representing approximately 11.77% of the issued share capital of the company at an initial conversion price of HKD 6.29 ($0.80135) per share. The transaction is expected to close on September 29, 2018. The company will pay $200,000 as issuance expenses. The company will receive net proceeds of $320,500,000. The investors shall have the right to redeem the entire outstanding principal amount of the bonds before the maturity, upon the occurrence of a triggering event.