China Petroleum & Chemical Corp (Sinopec; SNP.NYSE, 600688.SH, 0338.HK), announced Wednesday that it plans to issue US$3.5 billion worth of convertible bonds, Dow Jones reported. The sale would constitute the largest convertible-bond issuance by any company in the Asia-Pacific region since August. Sinopec, Asia’s largest refiner by capacity, said that existing shareholders – but not the parent company – will have first chance to purchase the bonds, which will have a maturity of six years. Analysts predict that the sale will absorb the majority of demand from domestic fixed-income investors, leading to a tightening of liquidity over the coming days. The announcement led to a significant rise in benchmark funding costs in China’s interbank market on Thursday.