Henan Shenhuo Group to issue RMB 500 mln in financing bills

Oct. 19, 2009 (China Knowledge) - Henan Shenhuo Group Co, parent of Henan Shenhuo Coal Industry and Electricity Power Co Ltd<000933>, on Friday announced that it will issue 365-day financing bills on the interbank market on Oct. 21, sources reported.

The company hopes to raise up to RMB 500 million through the issuance.

The financing bills will be issued at face value and the yield will be determined in the process of book building.

The bills will become tradable on Oct. 23, and both the value date and the payment due date will be Oct. 22, according to the company's statement.

The proceeds from the issuance will be mainly used to replenish working capital and repay bank loans.

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

China CITIC Bank Corp<601998><0998> and CITIC Securities Co Ltd<600030> have been assigned as the major underwriters for the sale.