Guizhou Wengfu to issue RMB 700 mln bonds

Nov. 25, 2008 (China Knowledge) - Wengfu (Group) Co Ltd, controlled by China Cinda Asset Management Corp, said it would issue 700 million short-term financing bonds with a maturity of 365 days on the interbank market on Nov. 28.

According to the company's statement on the official Chinabond.com website, the bonds will become tradable on Dec. 2 and the yield will be determined during the process of book building.

Proceeds from the issuance will be used to supplement working capital and repay part of bank loans, according to the company.

China Cheng Xin International Credit Rating Co has rated the issuer and the bonds AA- and A-1 respectively.

The Industrial and Commercial Bank of China (ICBC)<601398><1398> has been assigned as major underwriter for the sale.

Wengfu (Group) Co is engaged in phosphorus mining and beneficiation and in the production and scientific research of phosphate compound fertilizer, phosphorus coal chemicals, and iodine and fluorine chemicals.

The company has a registered capital of over RMB 4 billion and its shareholders include China Cinda Asset Management Corp (56.45%), the State Development and Investment Corporation (SDIC) (19.66%), China Construction Bank Corp (CCB)<601939><939> (12.72%) and the SASAC of Guizhou Province (11.17%).