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OEL Holdings plans to issue up to $40m in convertible bonds

OEL Holdings, an investment holding company, on Tuesday said it plans to issue up to S$40 million in redeemable zero-coupon convertible bonds to Pacific Alliance Asia Opportunity Fund.

The bonds will be issued in 20 separate successive tranches, each tranche having an aggregate principal amount of S$2 million, which may be convertible into ordinary shares in the company.

If all the bonds are issued and fully converted into new shares at the minimum conversion price of S$0.04, the maximum number of new shares issued will represent more than double the existing share capital of the firm.