(ATF) The official website of China’s National Development and Reform Commission has said the Yancheng High-tech Zone Investment Group Co has got the go-ahead to issue company bonds of not more than 1.5 billion yuan (close to US$212 million).
Some 550-million yuan of the funds will go toward an “intelligent” terminal industry park with three industrial plants, while 800 million yuan will be used for the construction of standardized industrial plants, and 150 million yuan will be used as supplementary working capital.
The term of the current bond is seven years and it has a fixed interest rate, a simple interest amount that will be calculated annually.
These bonds are issued through a book-building and filing system of the Central Government Bond Registration and Settlement Co Ltd in accordance with the principles of openness, fairness and justice. The issuance interest rate will be determined in a market-oriented manner.
The book-keeping file-building interval should be determined by the issuer and the lead underwriter based on market conditions after negotiation in accordance with relevant laws and regulations.
In response to the company’s application, the bond will be accompanied by an early repayment clause – that is, from the third year of the bond’s duration, the principal of the bond will be repaid at a rate of 20% of the total bond issuance year-by-year.
The current bond is led by lead underwriter CITIC Construction Investment Securities Co Ltd, with joint lead Huafu Securities Co Ltd. The former deputy underwriter East Sealand Securities Co Ltd, distributor business Guotai Junan Securities Co Ltd and Donghai Securities Co Ltd will form a syndicate to underwrite the balance.
