Hongshi Holding issues bond for cement plant project

Hongshi Holding Group Co Ltd has issued a "Belt and Road" (B&R) construction corporate bond on the Shanghai Stock Exchange (SSE), which was also the first B&R construction corporate bond publicly offered by an enterprise from Laos.

The raised funds will be used in the purchase of relevant equipment for the Hongshi cement project in Vientiane, Laos. As one of the major B&R construction projects involved by Zhejiang's enterprises, the new cement plant was included in the "Collection of Major B&R Construction Projects Involved by Zhejiang Province" in June 2017.

After the completion, the project is expected to produce 2Mta of high-grade cement, which will meet the demand for high-quality cement in construction of large-scale infrastructure in Laos and contribute to exporting China's advanced cement technology and equipment to upgrade the overall cement industry in Laos.

The publicly-issued B&R construction corporate bond was underwritten by Guotai Junan Securities Co Ltd with the issuance size at CNY300m (US$46.9m) and the interest rate at 6.34 per cent. The three-year bond recorded a total of 2.67 times in subscription, with both the issuer and the bond rated at AAA.