The board of directors of Asia Cement Corp, one of Taiwan’s leading producers of cement, recently approved to raise fresh funds of US$600m, or approximately NT$18.28bn, to set up plants in China and fund other projects overseas.
Asia Cement will issue unsecured overseas exchangeable corporate bonds up to US$400m with maturity in five years, as well as issue unsecured overseas convertible bonds of up to US$200m in the next five years.
Asia Cement noted the capital raised will fund prospective operations and improve financial structure, mainly the establishment of new plants in China and strategic alliances with counterpart firms.
By the end of this year, the company will own 11 cement kilns in China with total production capacity reaching 22.4Mt, also aiming to set up two cement production lines in Jiangxi province.
Asia Cement will see annual output amount to 32.4Mt by 2014.