State Grid Corp. of China is seeking approval from the China Banking Regulatory Commission (CBRC) to issue US$24.86 billion of bonds to finance the construction of new power networks, said an official at the company, the Wall Street Journal reported. State Grid, which has a near monopoly on power distribution in China, is planning the investment in line with the government stimulus package announced in November that puts emphasis on infrastructure projects. Since its earnings fell sharply last year, the company is turning to the bond market rather than the stock market to raise the cash it needs. State Grid will also spend US$36.64 billion on upgrading its existing power networks.
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