(Hong Kong, 16 Aug 2007) - ZTE Corporation ("ZTE" or the "Group") (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced that it plans to issue Bonds cum Warrants with a term of 5 years of total amount of bonds no more than RMB4billion.
The Offer will be offered for subscription at a nominal value of RMB100 per Bond. The Warrants will be offered to the subscribers of the Bonds on a pro-rata basis. The bonds will be offered to any investor having maintained a shareholder's account for the ordinary shares denominated in RMB (A Shares) at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
Proceeds from the proposed issue of Bonds cum Warrants and funds received as a result of the exercising of attached warrants by holders will be injected in full into R&D and deployment of 11 projects in relation to TD-SCDMA HSDPA systems, TD-SCDMA terminals, innovative handset platform and new-generation optical network transmission equipment, etc. The total amount of funds required is approximately RMB10.7billion.
ZTE's decision to issue the Bonds cum Warrants was made after conducting in-depth and objective analyses on industry development trends and the Group's own development plans and well estimates on the input/output of the above projects with reference to market potential, technology trends and feasibility. The Board of Directors believes the proposed move agrees with the country's policy for the industry and will deliver sound economic and social benefits, as well as boost the Group's core competitive strengths and sustainable development capabilities. It will also raise the Group's ability to innovate and compete in the international market.
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