China Resources to issue RMB 2.5 bln in financing bills

Oct. 19, 2009 (China Knowledge) - China Resources Co Ltd on Monday announced that it will issue one-year financing bills on the interbank market on Oct. 26, sources reported.

The company hopes to raise up to RMB 2.5 billion 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. 28, and both the value date and the payment due date will be Oct. 27, according to the company's statement.

China Resources will use 40% of the proceeds from the issuance to replenish the working capital of its Snow Breweries division. The remaining part of the proceeds will be used to repay bank loans and optimize the firm's financing structure.

China Lianhe Credit Rating Co Ltd has rated the issuer and the bills AAA and A-1, respectively.

Industrial and Commercial Bank of China<601398><1398> and Agricultural Bank of China have been assigned as the major underwriters for the sale.