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Hong Kong International Construction Investment Management, a unit of the acquisitive Chinese conglomerate HNA Group, announced it is raising HK$9.3bn ($1.2bn) that will help pay off loans related to its project at Hong Kong’s former airport site.

The company advised the Hong Kong Stock Exchange this morning it would issue some 2.2bn rights shares on a two-for-one basis at a price of HK$4.08 per share.

The gross proceeds of the rights issue represents a little more than twice the company’s market capitalisation of HK$4.5bn. HKICM is two-thirds owned by HNA, which owns a suite of assets in the travel and tourism industries, including Hainan Airlines.

The net proceeds of the capital raising – about HK$9.2bn – will be put toward paying off loans including, but not limited to, loans related to its purchase of land at the site of Hong Kong’s famous former airport, which is being turned into a second central business district for the territory.

Earlier this year, another unit of HNA, Top Genius Holdings, spent HK$5.5bn on a parcel of land at Kai Tak, taking its shopping bill at the site to about HK$20bn over a three-month period. Proceeds of the capital raising will be put toward paying the financing part of the Top Genius acquisition, as well as financing future investment opportunities and general working capital.

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