China Resources Cement to issue US$400m credit enhanced senior bonds

China Resources Cement to issue US$400m credit enhanced senior bonds
Published: 28 September 2012

Tagged Under: China Resources Cement China 

China Resources Cement said it has priced the US$400m 2.125 per cent credit enhanced senior bonds due 2017 following a book-building exercise conducted by DBS as sole global coordinator and bookrunner.

The bonds will be issued at an issue price of 99.75 per cent and will bear an interest rate of 2.125 per cent per annum payable semi-annually in arrears.

CR Cement currently intends to use the net proceeds of about US$389m for refinancing and general corporate purposes.

In connection with the issue of the bonds and the letter of credit providing credit support for the bonds, CR Cement, as borrower, entered into an around US$406m five-year and 30-day standby letter of credit facility agreement. It shall be an event of default if China Resources (Holdings) Company Limited (CRH) holds less than 35 per cent of the issued share capital of CR Cement. CRH currently holds about 73.34 per cent of the issued share capital of CR Cement.