Zhejiang Expressway gets consent for up to RMB 7 billion two-part offering of notes

By William Gullotti

Buffalo, N.Y., March 18 – Zhejiang Expressway Co. Ltd. received nearly unanimous shareholder approval to issue up to RMB 5 billion of mid-term notes and up to RMB 2 billion short-term commercial paper of no more than one-year maturity, according to an announcement on Friday.

According to the announcement, 85.45% of the shareholders attended or voted by proxy at the Friday extraordinary general meeting, of which all but 23 votes were in favor of the proposals.

As a result, Zhejiang intends to issue up to RMB 5 billion mid-term notes with a tenor lasting no more than five years.

Regarding the approved commercial paper offering, it will total no more than RMB 2 billion and possibly be split into short-term and super short-term issues. The short-term offerings will have a tenor not to exceed one year, with the super short-term tenors capped at 270 days.

In both cases, shareholder approval is valid for two years and offerings may be issued in more than one tranche.

Interest rates will be set at prevailing market rates.

The proceeds of both issues are earmarked to repay borrowings, to replenish working capital, for equity investment and to invest in projects consistent with national industrial policies.

As previously reported, the issuance is deemed to help the company improve its financing structure, reduce its cost of capital and lower its finance costs.

Zhejiang is an infrastructure company based in Hangzhou, China.

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