Sinopec to sell RMB 20 bln worth of corporate bonds

China Petroleum & Chemical Corp (Sinopec)<600028><386>, China's leading oil and gas producer, received approval from the National Development and Reform Commission (NDRC) to sell RMB 20 billion (US$2.66 billion) worth of corporate bonds in November.

It will expand its corporate bond issuance quota in Beijing to RMB 218.7 billion this year, compared with RMB 60.8 billion last year.

Sinopec's subsidiary Chuan Qi Dong Song Engineering Co. will divide the bonds equally between 5-year and 10-year tranches.

The deal by the engineering company, which delivers natural gas from Sichuan province to the east coast, will be underwritten by China International Capita Corp., Goldman Sachs Gao Hua Securities Co and BOC's subsidiary BOCI Securities Ltd.

After issuing RMB 99.2 billion bonds quotas to 95 companies in March, the NDRC will increase the corporate bond quota by RMB 99.5 billion this year. It will grant RMB 60 billion worth of quota to the Ministry of Railways and RMB 39.5 billion worth of quota to China State Grid Corp.

According to the official website of the China Government Securities Depository Trust & Clearing Co ChinaBond, China issued only RMB 53.6 billion worth of corporate bonds, or 1% of the total bonds issuance, at the end of August 2007.