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PARIS, March 31 (Reuters) – Gecina said on Wednesday it would launch a convertible bond issue to raise up to 320 million euros ($429.6 million) to strengthen the French property company’s finances.

Gecina, which has hired a new management team in recent months and is trying to turn its back on its financial troubles and past boardroom disputes, said it would issue bonds for 250 million euros, that can be either reimbursed in cash or converted into existing or new shares.

The issue can be raised to 320 million euros if extension and overallotment clauses are applied.

Its maturity is Jan 1, 2016 and its coupon carries an annual interest rate of between 2.125 percent and 2.625 percent.

‘The bond issue is aimed at diversifying the company’s financing sources. Furthermore, the funds raised in this issue will allow to fund general financing needs and notably finance existing and future development projects,’ Gecina said.

(Reporting by Juliette Rouillon; Editing by Hans Peters) Keywords: GECINA/

(marie.maitre@reuters.com; +33 1 4949 5331; Reuters messaging: marie.maitre.reuters.com@reuters.net)

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