CTF Services (HKG:0659) will repurchase up to HK$780 million in outstanding 4.00% convertible bonds due in 2025, while launching a new issue of HK$850 million in 2.80% convertible bonds due 2027, according to a Friday Hong Kong bourse filing.

The company said it has already received commitments from bondholders to sell about HK$566 million of the existing notes.

Proceeds from the new bond issue, which carries a 2.80% coupon and is expected to list on the Vienna Stock Exchange, will be used primarily to fund the repurchase.

Remaining proceeds will go toward general corporate purposes.

At full conversion, the new bonds could result in the issue of 110.8 million new shares, or about 2.7% of the company's enlarged share capital.