China Southern to raise $1.5 billion through private share placement

China Southern Airlines announced the private placement of CNY10 billion ($1.46 billion) in new A shares to a minimum 10 investors, including parent China Southern Air Holding Co., along with new H shares to CSAHC's Hong Kong subsidiary Nan Lung worth a reported CNY750 million. CZ said the funds "will help reduce the company's gearing ratio, improve its capital structure and enhance its ability to mitigate risk." CSAHC is investing the CNY1.5 billion it received from the Chinese government last month, the airline said
(ATWOnline, Feb. 23).

Separately, CZ is selling five ATR 72-500s at auction. Bids, along with a $500,000 deposit, are due May 31.