Nanshan now issuing RMB 2 bln in corporate bonds

Published: 19 Oct 2009 19:11:09 PST

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Oct. 20, 2009 (China Knowledge) - Nanshan Group, parent firm of Shandong Nanshan Industrial Co Ltd<600219>, today announced that it will issue a total of RMB 2 billion in corporate bonds in the period from Oct. 20 to Oct. 27, sources reported.

The corporate bonds will be issued via the Shanghai Stock Exchange and the sale network provided by the underwriters.

RMB 1.4 billion worth of bonds are available to domestic institutional investors. Half have a duration of six years, and half have a duration of ten years.

The company said in a statement filed with the Shanghai Stock Exchange that the ten-year bonds have a coupon rate of 7.5%. The issuer has the option to raise the rate by up to 100 basis points at the end of the eighth year.

Nanshan will use RMB 1.6 billion of the proceeds to fund the construction of a 100,000-ton port, a clothing factory and a plastic pipe plant.