China National Travel Service (HK) to issue RMB 2 bln bonds

China National Travel Service (HK) Group Corp, controlled by the State-owned Asset Supervision and Administration Commission (SASAC), announced it would issue RMB 2 billion fixed-rate corporate bonds with a maturity of five years from today to Dec. 10.

The interest rate of the bonds is set at 4.28%, according to the company's statement posted on the official Chinabond.com website.

RMB 1.4 billion of the proceeds from the issuance will be used to finance the 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 Co<600030> and China International Capital Corp have been assigned as major underwriters for the sale.

Established in 1928, China National Travel Service (HK) Group Corp is mainly engaged in tourism industry, as well as steel, real estate and logistic sectors.

As of the end of 2007, the Hong Kong-based company has total assets of nearly RMB 40 billion.