Wuxi Zhenhua Auto Parts (SHA:605319) will issue convertible bonds worth 520 million yuan, according to a Shanghai bourse disclosure on Wednesday.

The convertible bonds have a term of six years. The initial coupon rate will be 0.2% in the first year and will eventually increase to 2.5% in the sixth year, the Chinese automotive stampings company said.

Orient Securities (SHA:600958, HKG:3958), also trading as DFZQ, is the lead underwriter of the issuance.

Zhenhua Auto Parts' shares closed less than 3% lower.