China National Aviation to issue bills next Tue

Oct. 16, 2009 (China Knowledge) - China National Aviation Holdings Co, the parent of the country's flag carrier Air China Ltd<601111><0753>, will issue RMB 3.5 billion in short-term financing bills with a maturity of 365 days on Oct. 20, sources reported.

The proceeds from the bill issuance will be used to replenish the company's working capital and help optimize the firm's financing structure.

China Cheng Xin International Credit Rating Co has rated the issuer and the bills AAA and A-1, respectively.

Industrial and Commercial Bank of China Ltd<601398><1398> and Industrial Bank Co Ltd<601166> have been hired to handle the sale.

According to an earlier report from China Knowledge, Air China plans to buy a 12.5% stake in Hong Kong's largest carrier, Cathay Pacific Airways Ltd<0293> for HK$6.3 billion from CITIC Pacific Ltd<0267>. After the transaction, Air China's shareholding in the Hong Kong-based airline will increase to 29.99% from the current 17.49%.