China Enterprise to issue RMB 1.2 bln in corporate bonds

Published: 25 Oct 2009 19:49:00 PST

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Oct. 26, 2009 (China Knowledge) - China Enterprise Co Ltd<600675>, a real estate developer, has announced that it plans to issue RMB 1.2 billion in corporate bonds with coupon rates ranging from 6.95% to 7.15%, sources reported.

According to a statement filed with the Shanghai Stock Exchange, the property enterprise intends to issue 90% of the five-year corporate bonds offline and 10% online.

The company will use RMB 560 million of the proceeds from the issuance to repay bank loans and will use the remaining funds to replenish working capital.

A Shanghai-based real estate firm has rated the issuer and bonds AA- and AA+, respectively.

Reportedly, China Enterprise won the bid for a piece of land in Baoshan District, Shanghai for RMB 1.4 billion. The parcel covers a land area of 102,246 square meters and will have a floor area ratio of 1.5.