China’s Zhejiang Expressway plans up to RMB 3 billion mid-term notes

By Sarah Lizee

Olympia, Wash., Jan. 15 – Zhejiang Expressway Co. Ltd. is proposing to issue up to RMB 3 billion of mid-term notes in one or more tranches, according to a notice.

The interest rate is expected to be 4%, and the notes may have a term of up to five years.

Up to RMB 1.7 billion of proceeds from the notes will be used for the company’s acquisition of 100% of the equity interest in Zhejiang Shenjiahuhang Expressway Co., Ltd. from Zhejiang Communications Investment Group Co., Ltd. for about RMB 2,943,000,000. The company said it will also use internal resources to finance the transaction.

If the notes are voted down by shareholders, the company said it will use internal resources and bank borrowings to finance the transaction.

Proceeds from the notes will also be used for project investment, repayment of borrowings and to replenish working capital of the group.

Zhejiang is an infrastructure company based in Hangzhou, China.

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