BYD intends to issue 1 billion bills

BYD announced that the Subsidiary entered into a subscription agreement with UBS AG and will arrange for subscribers to subscribe for and pay the RMB1 billion notes to be issued by BYD (Hong Kong). The proceeds are intended to be used by BYD (Hong Kong) to develop and expand group business.

BYD (01211) announced on April 20 that the wholly-owned subsidiary BYD (Hong Kong) has entered into a subscription agreement with UBS AG and that UBS (as the sole global coordinator, sole bookrunner and joint lead manager) promised Under the terms of the subscription agreement, the subscribers were arranged to subscribe for and pay the total principal amount of RMB 1 billion in bills to be issued by BYD (Hong Kong). CCB International, ICBC Asia and Standard Chartered Bank are the other joint lead managers for the issuance of notes, and Wing Lung Bank is the deputy lead manager.

The net proceeds are intended to be used by BYD (Hong Kong) for the development and expansion of the Group's business and general financing purposes. After all necessary Chinese government approvals have been obtained, the net proceeds may also be lent to BYD (Hong Kong)'s Chinese subsidiary, but not necessarily BYD's (Chinese) subsidiary (00285). BYD (Hong Kong) indirectly owns 65.76% interest in BYD Electronics.

The notes are in RMB for a period of three years, expire in 2014, and carry interest at a fixed rate of 4.5% per annum on April 28, 2011 (including that date). Interest is on a half-yearly basis on April 28 and 10 every year. On the 28th (or closest) payment.