China Railway : to Issue Up to CNY3.5 Billion in Extendable Corporate Bonds

By Yifan Wang

China Railway Group Ltd. said it plans to issue extendable corporate bonds of up to 3.5 billion yuan ($503.95 million).

The bonds, to be issued to professional investors in China, will carry basic maturity terms of three and five years. At the end of each term, the issuer will have the option to extend the bonds by another period of their basic maturity, the company said.

China Railway put the coupon range for the bonds with a three-year basic maturity at 3.30%-4.30%, while the bonds with a five-year basic maturity are expected to be priced at a coupon of 3.80%-4.80%.

The construction company plans to use the bond proceeds to repay debts and replenish its working capital.

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