Hollysys Automation Technologies Participates in Bond Issuance
Jan 10, 2008
Beijing, China – January 10, 2008 – Hollysys Automation Technologies, Ltd. ("Hollysys") today announced the Company's operating subsidiary, Beijing HollySys Co., Ltd. ("HollySys"), participated in the Zhongguancun Hi-tech SME Integrated Bond issuance, which was approved by the National Development and Reform Commission together with the State Council of the People's Republic of China. The bond carried a total sum of RMB305 million (approximately USD41.8 million based on 1: 7.3 exchange rate at December 28, 2007), of which RMB80 million (approximately USD11 million) was issued by HollySys. The bond has a three-year term from December 25, 2007 to December 28, 2010 with a fixed annual coupon rate of 6.68%.
The bond is guaranteed by Beijing Zhongguancun Sci-tech Guaranty Company Limited (government funded entity) and co-guaranteed by the China Development Bank. HollySys is one of the four selected enterprises to participate in this highly exclusive bond issuance, the other issuers including Digital China, BDStar Navigation and Grikin Advanced Materials. The Company intends to use the proceeds from the bond offering to improve the production capacity for both its integrated industrial automation system (HOLLiAS systems) and programmable logic controllers (LK series), enhance R&D efforts in the digitalized railway signal and control systems, and further develop its 1,000MW Nuclear Power Plant digital instrumentation and control systems.
Dr. Wang Changli, Hollysys' Chief Executive Officer, stated, "One of Hollysys' greatest strengths in its relations with government entities in the PRC, and HollySys' selection to participate in this bond issuance is a reflection of the confidence these officials have in our ability to succeed in future years."
Hollysys has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors.
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