China National Materials Co to sell bonds

China National Materials Co to sell bonds
Published: 27 July 2009

China National Materials Co said on Monday that it has won approval from China’s securities regulator to issue up to CNY2.5 bn (US$366m) of bonds, becoming the first Hong Kong-listed company to sell bonds on the mainland.
 
The seven-year bonds, with an indicative coupon between 4.90 and 5.40 percent, will be sold from Wednesday and comprise a retail tranche of 10 percent of the issue plus an institutional tranche of 90 per cent, the cement equipment and construction firm said in a statement.
 
Its parent company China National Materials Group Corp, also known as Sinoma, will be the guarantor while Pengyuan Credit Rating Co has rated the bonds AA-plus. The lead underwriter is BOC International (China).
 
China’s authorities are moving to expand corporate bond issuance and diversify the types of issuers to deepen the market, which is still tiny compared with bank lending.
 
They aim to diversify credit risks from banks, which have traditionally provided the vast bulk of financing for Chinese corporations, to other investors such as securities houses, insurers and even individuals.
 
Source: www.cementchina.net