Ibiden is advancing the construction of a new factory in Ono Town, Gifu Prefecture.

Ibiden announced that it will issue euro-denominated convertible bonds (CBs) with new share subscription rights, raising approximately 70 billion yen (equivalent to 33 billion Chinese yuan based on the exchange rate at 2:09 AM on March 4). The funds will be allocated to equipment investment for a new factory under construction in Ono Town, Gifu Prefecture, to meet the demand for high-performance IC package substrates used in servers for artificial intelligence (AI) applications.

CBs are bonds with the right to convert into shares under certain conditions. Ibiden's CBs are zero-coupon bonds with no interest, with a payment date of March 15 in London time. They will mature on March 14, 2031, as a 7-year bond. The company will seek investors in overseas markets, mainly in Europe and Asia.

For the first five years after issuance, Ibiden will include restrictive clauses that prevent conversion requests unless the stock price exceeds 150% of the conversion price for a certain period, making conversion less favorable and considering existing shareholders. The conversion price will be set above the stock price at the time of condition determination to mitigate dilution of per-share value.

Ibiden is also a procurement source for leading U.S. semiconductor company NVIDIA. With the rapid adoption of AI technology, the company is expediting the launch of the new factory.

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