(Yicai) Jan. 7 -- Shares of Miniso fell after the Chinese discount retailer of lifestyle and household goods said it plans to sell USD500 million of convertible bonds.

Miniso [HKG: 9896] dropped 5.6 percent to HKD48.20 (USD6.20) a share as of 10.35 a.m. in Hong Kong today. Its New York-listed stock [NYSE: MNSO] plunged 12.7 percent to USD24.07 yesterday.

Miniso will use around half of the funds for a share buyback plan and the rest for opening new overseas stores, enhancing the supply chain, and improving brand awareness, it announced today.

The convertible bonds will have an annual coupon rate of 0.5 percent and are due to mature in 2032, Miniso noted. The initial conversion price will be HKD64.40, or a premium of 26 percent over the firm's closing price of HKD51.05 a share yesterday.

This is the first plan of Guangzhou-based Miniso to raise funds by issuing convertible bonds.

Established in 2009, Miniso had 4,115 stores in China and 2,753 overseas as of the end of June. Founder Ye Guofu said in October that the company plans to open 900 to 1,100 new outlets a year, with half on the domestic market and half overseas.

Miniso commits to providing consumers with creative and high-quality products at very affordable prices. It has received investments from internet giant Tencent Holdings and private equity firm Hillhouse Capital.

Editors: Tang Shihua, Martin Kadiev