China Household Holdings Limited (SEHK:692) announced that it has entered into a subscription agreement for private placement of convertible bonds for gross proceeds of HKD 140,000,000 on January 24, 2017. The transaction will include participation from not less than six investors including Luo Jianhua. The convertible bonds are convertible at fixed conversion price of HKD 0.20 per share and carry fixed 2% interest rate per annum payable at maturity date. The convertible bonds are convertible after two years from the date of issue. The convertible bonds are redeemable at its maturity. The bonds will be issued at par. The company will issue maximum 700,000,000 conversion shares. The transaction is subject to certain precedent conditions including approval from stock exchange. If the precedent conditions are not fulfilled on or before February 24, 2017, the agreement may be terminated. The company expects to complete the transaction on the third business day after the completion of precedent conditions. The company will receive net proceeds of HKD 139,700,000 in the transaction.