China Hongqiao to issue up to RMB 2.3 billion of seven-year floaters

By Angela McDaniels

Tacoma, Wash., Sept. 12 - China Hongqiao Group Ltd. received regulatory approval to issue up to RMB 2.3 billion of corporate bonds in China, according to a company news release.

The notes will be issued by subsidiary Shangdong Hongqiao New Material Co., Ltd. and guaranteed by the parent company.

The bonds will have a seven-year term.

The interest rate will be Shibor plus 310 basis points. At the end of the fifth year, the issuer will have the right to increase the interest rate by up to 100 bps points.

Bondholders will have a put option after five years.

Proceeds will be used to expand production capacity and for supplementing working capital.

China Hongqiao is an aluminum products manufacturer based in Zouping County, China.

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