China Tianrui Group Cement Co is considering selling a three-year offshore yuan bond, known as a dim sum bond, a source disclosed to Dow Jones.
The cement producer, which operates in the Henan and Liaoning provinces, has mandated BOC International as the global coordinator to arrange a series of bond investor meeting and conference calls, the source said. The company plans to use the proceeds to refinanced existing debt obligations and supplement working capital.
Meanwhile, Moody’s Investors Service has assigned a provisional(P)B2 senior unsecured rating to the RMB senior notes to be issued by China Tianrui Group. At the same time Moody’s has affirmed Tianrui Cement’s B1 corporate family rating.
The ratings outlook is stable.
"The proposed RMB senior notes will improve Tianrui Cement's debt maturity profile and its liquidity position," said Jiming Zou, a Moody's Analyst.
"This offshore funding exercise will also help Tianrui Cement broaden its funding sources – beyond the domestic bank and debt capital markets – and will provide funding stability for its business growth," added Zou, also the lead analyst for Tianrui Cement.