Li Ning Company, one of the largest sportswear retailers in China, rose sharply on 20 Jan. after selling HKD922 million (USD118.9m) of convertible bonds to investment firm TPG and the sovereign fund of Singapore.

The Beijing-based company, which has recorded declining orders since last year, expects to use the funds for brand development, sports sponsorship, research and design, new stores and working capital.

According to the deal, TPG, a Texas-based private equity firm, agreed to buy HKD690 million of bonds and will have the right to nominate two directors to Li Ning's board. In addition, TPG will buy 53 million ordinary shares from Li Ning, the sportswear company's founder and chairman.

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