China National Travel Service (HK) to issue RMB 1 bln in bonds

Apr. 8, 2009 (China Knowledge) - China National Travel Service (HK) Group Corp, a conglomerate engaging in property development and logistics as well as travel services, announced on Wednesday that it would issue five-year fixed-rate bonds worth RMB 1 billion on the interbank market on Apr. 15.

The yield of RMB 400 million will be used to expand the company's travel network and construct hotels. The rest of the RMB 600 million proceeds will be used to meet the operating costs, optimize the company's liability structure, and reduce financing costs, according to a company statement posted on the official Chinabond.com website.

The value date and payment due day will both be Dec. 16. The bonds will become tradable on Apr. 17.

China Lianhe Credit Rating Co Ltd has rated the issuer and the bonds AAA and AAA respectively.

China Construction Bank Corp<601939><939> and CITIC Securities Co Ltd<600030> have been assigned as the joint-underwriters for the sale.