China's AVIC plans RMB 400 million five-year notes to yield 4½%-5½%

By Susanna Moon

Chicago, Feb. 22 - AVIC International Holdings Ltd. said its non-wholly owned subsidiary Fiyta Holdings Ltd. plans to issue RMB 400 million of five-year debentures at par on Feb. 27.

The coupon will be set at between 4½% and 5½% for the first three years, with the final rate to be set at pricing.

The fixed rate may be increased, at Fiyta's option, by 10 basis points to 100 bps for the fourth and fifth years of the bonds, according to a company press release.

The notes will be callable and putable after the third year.

The subsidiary plans to use RMB 100 million of the proceeds for working capital and RMB 300 million for repayment of loans.

Avic International, formerly known as Catic Shenzhen Holdings Ltd., is a Hong Kong-based holding company.

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