To help finance planned capital expenditures of $370 million and to repay some debt, Yue Yuen is reportedly preparing to raise $300 million from a bond issue. The company has submitted a statement to the Hong Kong Stock Exchange, but would not disclose any further information. At least $125 million worth of shares would be sold at a 3-5 percent discount on the closing price of 24 Hong Kong dollars before the announcement. Yue Yuen hopes the bond sale will generate around $175 million. The 5-year, zero-coupon bonds would be transformed into shares at a 15-20 percent premium, or sold back to the company for a 9.1-13.1 percent premium if held until maturity. Yue Yuen and Pou Chen say they will not sell any shares for 90 days after the placement.