French semiconductor materials manufacturer Soitec plans to issue 500 million euros of seven-year convertible bonds to take advantage of the favorable opportunity of a five-fold increase in its stock price during the year for low-cost financing. The bond has an annual interest rate of 0.5% to 1%, a conversion premium of up to 50% — 55%, and the funds will be used to refinance debt or support growth strategies. To hedge risk, the underwriting investment bank will provide around 100 million Euros of Soitec shares for supporting operations.

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