(Yicai) Nov. 24 -- Asia-Potash International Investment said it will issue as much as CNY2 billion (USD280.5 million) of convertible bonds to finance the expansion of a potash fertilizer project in Laos.

The notes will finance the second stage of the project in Khammouane province, central Laos, which will add the capacity to turn out one million tons of potash fertilizer a year, the Guangzhou-based firm said yesterday. The one-million-ton first phase is under construction.

An Asia-Potash unit owns the mining rights to potassium ore in an area of 179.8 square kilometers in the Phonxai-Nongbok Mining Area in Khammouane. Its rights in Laos cover 263.3 sq km and the estimated reserves of potassium chloride exceed one billion tons. It has already built a potash fertilizer project with an annual capacity of one million tons in the Dongtai Mining Area in Khammouane.

Asia-Potash inked a deal with the Laos planning and investment ministry during last month’s Belt and Road Forum for International Cooperation, aiming to have its local capacity of potash fertilizer output reach five million tons per year in 2025.

In the third quarter, Asia-Potash’s revenue jumped 34 percent to CNY869 million (USD121.8 million) from a year ago, while net profit dropped 35 percent to CNY994 million, according to its latest financial results released in late October.

Shares of Asia-Potash [SHE: 000893] fell 0.9 percent to CNY27.89 (USD3.90) apiece in Shenzhen today.

Editor: Emmi Laine