Sinochem to issue RMB 1 bln in medium-term notes

Apr. 27, 2009 (China Knowledge) - Sinochem Corp, the country's biggest chemical trader, announced on Friday it will float RMB 1 billion medium-term notes with a maturity of five years on the interbank market on May 5,

The company said in a statement that this batch of notes will be issued at the face value and the coupon rate will be determined during the process of book building.

Both the value date and the payment date of the notes will be May 5, 2009. The fixed-rate notes will become tradable on the next day. The yield will be jointly determined by the issuer and major underwriters after the book building.

Half of the proceeds from the issuance will be used to pay bank loans, and the remaining will be used to replenish working capital.

China Cheng Xin International Credit Rating Co Ltd has rated the issuer and the notes AAA and AAA,

ITIC Securities Co Ltd<600030> and China CITIC Bank Corp<601998><998> have been assigned as major underwriters for the sale.