Southern Airlines raises 9.8 billion debt

On the evening of November 1, Southern Airlines (600029).　　SH/01055.HK) issued a notice to disclose the results of a a-share, including the large shareholder of China Southern Airlines Group (hereinafter referred to as South Airlines), including 9 of the target subscription of its 1.5015 billion shares, the total amount of fund-raising net 9.838 billion yuan. The shares issued price of 6.66 yuan/share, Southern Airlines Group subscribe to 123.9 million shares, restricted period of 36 months. The remaining 8 shareholders have a restricted period of 12 months, including a natural person and institutional investors such as Societe Generale Fund and Bosera fund.　　Among them, the most subscribed shares for the Societe Generale fund, reached 211.8 million shares, while the rest of the subscription number of subscribers to 159 million to 194.2 million shares, all in cash subscription.　　The announcement shows that the funds raised by this non-public offering will be used to repay the debt. With the gradual expansion of the operation scale of Southern Airlines in recent years, the scale of indebtedness has also increased. The third quarterly Bulletin of 2010 showed that as at September 30, the total assets of the company amounted to 108.1 billion yuan, with a total liability of 89.3 billion yuan and an asset-liability ratio of up to 82%. The financial costs arising from bank loans have partly reduced the company's operating profit.　　2010 1-September, the company's financial costs reached 360 million yuan, while the company's net profit of 2.076 billion yuan. CITIC Securities issued a research report said that the issuance of additional help companies to further improve the capital structure, increase the thickness of net assets, reduce asset-liability ratio, improve the financial situation, improve the company's operating capacity and risk-resistant ability.　　After the completion of the targeted additional, the company's asset-liability ratio will be basically the average level of the world's major airlines. November 1, the Southern Airlines A shares closed 12.10 Yuan, rose 12.63%;h shares at HK $5.310, Rose 0.76%.