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Sinopec approved to issue RMB 20 bln corporate bonds

Published: 20 Nov 2008 17:19:42 PST

Nov. 20, 2008 (China Knowledge) - Sinopec<600028><386><SNP>, the top oil refiner in China, said in a statement filed with the Shanghai Stock Exchange today that it has won the approval from the China Securities Regulatory Commission to issue corporate bonds worth up to RMB 20 billion.

Proceeds from the bond issue will be used to repay bank loans and supplement its working capital, according to earlier media reports.

In the three quarters of 2008, Sinopec posted its net profit decreased 38.7% year on year to RMB 8.303 billion, despite the government subsidies totaling RMB 45.1 billion. The company attributed the sharp decline in net profit to the losses it recorded in its refinery businesses due to the surging crude prices earlier this year and the state-capped oil products prices.

A-Shares of Sinopec surged by 9.99% to close at RMB 8.37 on Wednesday.

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