China's Launch Vehicle Tech to issue RMB 1.1 bln in financing bills

Sep. 3, 2009 (China Knowledge) - Long March Launch Vehicle Tech Co Ltd<600879>, a Chinese firm engaged in the manufacturing and selling of aerospace products, Thursday announced that it will issue up to RMB 1.1 billion in short-term financing bills.

The company said in a statement filed with the Shanghai Stock Exchange that the financing bills will have a maturity period not more than 365 days.

The coupon rate will be determined in the process of book building and will not be higher than the prime loan interest rate during the corresponding period of the issuance.

The proceeds from the issuance will be mainly used to repay bank loans, so as to lower financing cost and improve profitability.

Meanwhile, Launch Vehicle Tech announced that it will change its name to Aerospace Times Electronics and Technology Co Ltd and invest RMB 80 million in its joint venture to help the firm expand capacity and replenish working capital.

The issuance plan is still subject to the approval from the China Securities Regulatory Commission.