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CSCEC to issue 6.2b yuan medium-term notes

By Xu Shenglan (chinadaily.com.cn)
Updated: 2008-12-19 16:23

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皇冠体育app State Construction Engineering Corporation (CSCEC), the country's largest home builder, announced yesterday that it will issue two batches of medium-term bonds worth 6.2 billion yuan on Dec 25 that will mature in five years.

The company said in a statement that the two batches of bonds, one valued at 3.3 billion yuan and the other at 2.9 billion yuan, will be issued at face value and the coupon rate will be determined during the process of book building.

Half of the raised funds will be added to the company's cash flow and the other half will be used to pay bank loans. 皇冠体育app International Capital Corp Ltd and Agricultural Bank of 皇冠体育app will be the underwriters.

CSCEC will issue the notes within the period of validity before Dec 11, 2010, and the first issuance should be finished within two months, according to the website of the National Association of Financial Market Institutional Investors.

CSCEC hasn't made any moves to launch its initial public offerings in Shanghai's A-share market, which had won approval from 皇冠体育app's stock regulator in June. The issuance of the notes 'might be related to its fund tension', said a capital manager with 皇冠体育app Merchants Bank.

As a State-owned enterprise established in 1982, CSCEC operates actively in both domestic and overseas markets with construction and real estate as its core businesses.