CIFI Holdings (Group) Co. Ltd. (CIFI Holdings) released additional details on its planned equity issuance tied to the restructuring of onshore bonds held by its wholly-owned subsidiary, CIFI PRC.

Under the restructuring’s Equity Option, every RMB100 of bond face value entitles the holder to proceeds from the disposal of 68 newly issued CIFI Holdings shares. Bondholders representing approximately RMB600 million in principal have elected this option, prompting the allotment of about 407.94 million new shares.

At the closing of the arrangement, the original onshore bonds covered by the Equity Option will be settled and cancelled. These bonds will simultaneously be exchanged for new onshore bonds of identical face value. The company confirmed that no additional net cash outflow is expected in relation to the settlement and cancellation of the new instruments.

Operationally, the Subscription Shares will be placed into a special purpose vehicle (SPV) established under the CIFI Purpose Trust. Bondholders may instruct the SPV to sell the shares at any time within 28 months following closing; any unsold shares will be mandatorily disposed of at the end of this period. CIFI PRC must apply the net proceeds from each share sale to cancel the corresponding new onshore bonds within six months of the transaction.

CIFI PRC remains obligated to fully settle and cancel the new onshore bonds by maturity using the aggregate net proceeds from all share disposals, thereby completing the bond restructuring without further cash outlay from the group.