Kandenko Co., Ltd. (TSE:1942) announced a private placement of 2,000 2021 due Euro-Yen convertible bonds with warrants at ¥10,050,000 per bond for gross proceeds of ¥20,100,000,000 on March 14, 2016. Each bond has a face value of ¥10,000,000 and will be issued at a premium of 0.5%. The bonds are convertible into common shares of the company at a fixed conversion price of ¥1,159.

The bonds will be issued to overseas market centered in Europe and Asia. The bonds have zero interest rate and 100% of the bonds' face value will be redeemed on March 31, 2021. The exercise period of warrants will be from April 14, 2016 to March 17, 2021.

The transaction has been approved by board of directors of the company. The settlement date for bonds will be March 31, 2016. The company will incur issuance expenses of ¥30,000,000 in the transaction.

The company will receive net proceeds of ¥20,070,000,000 in this transaction.