Li & Fung Ltd, a manager of supply chains for global retailers including Wal-Mart Stores Inc and Target Corp, plans to raise funds through US dollar-denominated perpetual bonds to help fund overseas acquisitions.

Li & Fung, which gets about 80 percent of its sales from Europe and the United States, said it would finalize the size and pricing of the bonds after a book-building process.

The securities would be listed on the Singapore stock exchange, the company said in a statement on Thursday.

Li & Fung is halfway through an ambitious three-year growth plan that aims to expand its profit partly through purchases of overseas assets. The company last month appointed Ed Lam, who previously headed Citigroup Inc's Hong Kong investment and banking division, as its chief financial officer to help advice the company on acquisitions, fund-raising and trade finance.

First-half core operating profit slumped 22 percent to $221 million, hit by sluggish demand from its key markets. The drop has prompted some analysts to question whether the company's acquisition-led business model still works and to wonder where it will get its future acquisition funding from.

China Daily-Agencies