GCL Technology (HKG:3800) said its GCL Solar Star Investment unit plans to raise $148 million via a debt offering, according to a Hong Kong bourse filing Wednesday.

The solar materials manufacturer's shares were down over 4% in late morning trade Thursday.

The issue involves the sale of 6.95% guaranteed convertible bonds due 2027 that can be exchanged for shares of GCL Technology at an initial rate of HK$1.21 per conversion share.

Assuming full conversion, the bonds would net 958.6 million GCL Technology shares, representing 2.80% of the business on an enlarged basis.

The convertible bonds are planned for listing in Vienna.

Proceeds from the debt offering will be used for general corporate purposes and repayment of debts, GCL Technology said.