China Success Finance Group (HKG:3623) agreed to subscribe for $4 million of a three-year exchangeable bond issued by Rakesh Rajagopal and carrying a 16% coupon rate, a May 2 filing with the Hong Kong bourse said.

Upon exercise of the exchangeable rights under the exchangeable bond in full, the bond will be exchanged into 1% of the total issued share capital of Coin Cove, which is 80%-owned by the issuer.

$1 million of the consideration for the subscription will be fulfilled from the proceeds of a share placement. The firm entered into an agreement to place up to 77 million shares at HK$0.7 apiece on the same day.

The remaining consideration will be satisfied through the allotment and issue of 33,428,000 shares in the company to the issuer at HK$0.7 apiece.

The consideration shares represent approximately 5.71% of the financial services provider's enlarged issued share capital.