Shandong Nanshan Aluminum Co., Ltd. held its 27th meeting of the 5th Board of Directors on October 31, 2007. The meeting reviewed and passed the relevant agreement resolutions.
The agreement indicates that the company intends to abandon the convertible corporate bonds that were applied for issuance of separable transactions. At the same time, the company intends to apply for a convertible corporate bond with a issuance size of RMB 2.8 billion.
The time limit for the convertible bonds to be issued by Nanshan Aluminum is 5 years from the date of issuance of the convertible bonds. The coupon interest rate range is from 0.5% to 2.8%. The specific interest rate will be submitted to the company’s shareholders’ meeting for authorization of the company’s board of directors in accordance with national policies and markets. Consult with the sponsor (lead underwriter) in consultation with the company's specific conditions.
In addition, the convertible bonds issued by Nanshan Aluminum Mountain will be mainly used to invest in the construction of a new alloy production line project with an annual output of 100,000 tons and a project to build an aluminum alloy ingot casting line with an annual output of 520,000 tons.