Hefei Construction Investment to issue RMB 1.7 bln bonds

State-owned Hefei Construction Investment and Holding Co. Ltd, a large-sized financial services platform provider in China, has won regulatory approval from National Development and Reform Commission (NDRC) on Aug. 25 to issue up to RMB 1.7 billion of corporate bonds.

The 10-year bonds, which are mainly targeting at institutional investors, will be launched officially at the beginning of next month, with a preliminary coupon rate of 6.91% per year. This bond is more attractive to investors compared with the current interest rate of 5.91% on fixed deposits.

Guosen Securities Co. Ltd is selected as the major underwriter for the bond offering.

Proceeds of the bonds offering will be used to funding construction of major projects, aiming to deal with water pollution, traffic network improving and other related construction programs.

Previously, the group obtained approval from NDRC to issue a t10-year corporate bond for RMB 1 billion in 2006.