China Petroleum & Chemical plans to redeem RMB 23 billion convertibles

By Susanna Moon

Chicago, Jan. 26 – China Petroleum & Chemical Corp. said it plans to redeem its RMB 23 billion A share convertible bonds.

The notes are callable at par plus accrued interest because the closing price of the company’s A shares was at least 130% of the conversion price for at least 15 out of any 30 consecutive trading days, according to a company press release.

Also, when the outstanding balance of the convertibles is less than RMB 30 million, the company’s board can decide whether to redeem all the outstanding amount of the convertibles based on the nominal value plus the accrued interest, the release noted.

The company said its A shares closed at or above 130% of the conversion price of RMB 4.89 per share, or RMB 6.36 per share, for 15 out of the 30 consecutive trading days from Dec. 12 to Jan. 26.

The convertibles were issued on Feb. 23, 2011.

The term of the convertible is six years from issue, and the conversion period began on Aug. 24, 2011.

China Petroleum is an energy and chemical company based in Beijing.

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