Central Huijin to issue 54 bln yuan in bonds
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Central Huijin Investment Ltd., the domestic arm of China's sovereign wealth fund, plans to issue its first batch of bonds of no more than 54 billion yuan (US$7.94 billion) next Tuesday, in a major initiative to re-finance state-owned banks, according to Xinhua Overseas Finance and Economic Report on August 16.
Bonds of seven years and 20 years will be issued, with 20 billion yuan (US$2.94 billion) of each type. An additional 6 billion yuan (US$882.90 million) of the seven-year bonds and 8 billion yuan (US$1.18 billion) of the 20-year bonds may also be issued. They will be underwritten by more than 60 businesses, including Agricultural Bank of China, China Development Bank, China International Capital Co. Ltd. and China Galaxy Securities.
The bonds will increase Central Huijin's shares in Industrial and Commercial Bank of China, Bank of China and China Construction Bank and act as its injection capital in the Export-Import Bank of China and China Export and Credit Insurance Co.
Central Huijin will release a notice to bid on Thursday. An insider has said Central Huijin plans to issue no more than 187.5 billion yuan (US$27.59 billion) in bonds this and next year.
China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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