China Railway plans up to RMB 10 billion of domestic bonds, RMB 7 billion of offshore bonds

By Marisa Wong

Madison, Wis., May 10 - China Railway Group Ltd. announced it plans to issue up to RMB 10 billion of corporate bonds and up to RMB 7 billion of offshore bonds.

The corporate bonds will be offered in one or more tranches in mainland China and will have maturities of 15 years or less.

The offshore bonds may be denominated in dollars or renminbi or denominated in renminbi but paid in dollars.

The offshore bonds will have a tenor not exceeding 30 years.

Proceeds from the corporate bonds will be used to supplement the company's working capital, improve its debt structure, repay loans and construct certain projects.

Funds from the Rule 144A and Regulation S offering of the offshore bonds will be used as working capital for offshore investment projects and offshore large-scale construction projects.

Both proposed issuances are subject to shareholder approval at a general meeting to be held on June 26. If granted, the approval would be valid for 36 months.

The construction group is based in Beijing.

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