China National Travel Service (HK) Group Corp, controlled by the State-owned Asset Supervision and Administration Commission (SASAC), announced it would issue RMB2 billion fixed-rate corporate bonds with a maturity of five years.
The interest rate of the bonds is set at 4.28%, according to the company’s statement posted on the official Chinabond.com website.
RMB1.4 billion of the proceeds from the issuance will be used to finance projects in Zhuhai and Xianyang, while the rest will be used to replenish working capital and repay bank loans, according to the company.
China Lianhe Credit Rating Co has rated the issuer and the bonds AAA and AAA respectively.
CITIC Securities and China International Capital have been assigned as major underwriters for the sale.
Established in 1928, China National Travel Service (HK) Group has total assets of nearly RMB40 billion.
Source: China Knowledge