Jul. 15, 2011 (China Knowledge) - Shenzhen Airport Co Ltd<000089> announced Wednesday that it plans to issue up to RMB 2 billion worth of convertible bonds on Friday.

The company said in a statement filed with the Shenzhen Stock Exchange that the bonds, with a maturity of six years, could be converted into A shares at RMB 5.66 apiece.

The bonds will carry a coupon rate of 0.6% in the first year, the rate will rise gradually and increase to 1.9% in the sixth year.

Proceeds from the deal will be used to fund an expansion project at the Shenzhen airport.

The company said earlier that its passenger volume climbed 4.8% year on year to 2.26 million in June, taking its total passenger throughput to 13.86 million in the first half of this year.

In the first six months, the company's cargo and mail throughput amounted to 397,700 metric tons, 5.2% more than in the same period of last year. The company saw its aircraft movements rise 2.2% year on year to 110,400 during the period.