Major Chinese privately-owned yard China Rongsheng is raising funds yet again with the issue of a HKD1bn ($129m) convertible bond offering, its second in as many months this year.

The funds from the 7% convertible bonds due 2016, will be used for the general working capital purposes of the group, which includes costs of production materials (such as raw materials, equipment and consumable use) and also operating expenses (such as employee benefit expenses, office expenses and utilities, professional fees and outsourcing and processing costs), the group said in a stock market announcement.

Explaining the rationale for the convertible bond offering, China Rongsheng said: "The board considers the issue of the convertible bonds represents an opportunity to improve the liquidity position of the group, to reduce the financing costs of the group and to raise further capital for the company in an aggregate net sum of HKD1,000,000,000. The board currently intends that the funds will be used by the company as mentioned above and considers that this will facilitate the overall development of the group."

China Rongsheng has previously raised HKD1.4bn in July last year, HKD1bn in December and another HKD1bn in February this year. All four tranches will come due in 2016.