(Bloomberg) -- WuXi AppTec Co. is raising $500 million through the sale of convertible bonds, becoming the latest Chinese company to turn to the instrument to reduce funding costs.

The Shanghai-based company issued zero-coupon notes that will be due in 2025, according to a statement to the Hong Kong stock exchange on Tuesday. The initial conversion price for the bonds is HK$80.02 a share, representing a 16% premium to the stock’s closing price on Monday. 

Chinese companies have increased their issuance of convertible bonds this year, including to fund things buybacks without immediate stock dilution. E-commerce giant Alibaba Group Holding Ltd. sold a record-breaking $5 billion convertible bond in May, while Ping An Insurance (Group) Co. in July raised $3.5 billion through the notes. 

WuXi AppTec said it plans to use proceeds from the sale for global expansion, refinancing debt and general corporate purposes. It is seeking funds at a time when US lawmakers are pushing global pharmaceutical companies to sever ties with the drug-research and contract-manufacturing firm. The US House of Representatives last month passed the so-called Biosecure Act that would blacklist Chinese biotech companies and their US subsidiaries from accessing federally funded contracts.

$Citigroup Inc(C-N)$. is the sole global coordinator of the deal.

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