Bank of China runs Inner Mongolian cement producer debt offer

Bank of China Ltd has been mandated as lead underwriter and book-runner of Inner Mongolia Mengxi Cement Co's planned debt offering worth CNY400m (US$63m), China Knowledge reports today, citing unnamed sources.

The Chinese cement producer plans to sell CNY400m of 365-day unsecured bills on 15 June. The bills will be issued on the interbank market and the coupon rate will be set during the book-building process. It plans to use half of the proceeds from the issuance for working capital. It will slate the other half for repayment of bank debt.

The issue has been rated at A-1 and Inner Mongolia Mengxi Cement has received AA- rating by Dagong Global Credit Rating Co.