Shares of A-Power Energy Generations Systems Ltd. fell Friday after the Chinese wind turbine manufacturer said it will sell $40 million of senior convertible notes to institutional investors.

Shares of the Shenyang, China-based company fell $1.55, or 16 percent, to $8.12 in afternoon trading.

The company said it signed a purchase agreement with several institutional investors for the notes that have an aggregate principal amount of $40 million plus warrants.

A-Power Energy said it would use proceeds to expand production and finance research and development among other purposes.