Sinochem plans to issue US dollar-denominated bonds

Nov. 18, 2009 (China Knowledge) - China National Chemicals Import and Export Corp, also known as Sinochem, the country's leading chemicals trader, plans to issue US$500 million worth of U.S. dollar-denominated bonds with a maturity of five years on the interbank market by the end of November, the Wall Street Journal reported yesterday, citing a source familiar with the matter as saying. 

The bonds will carry a floating rate tied to the six-month London interbank offered rate, said the source. Agricultural Bank of China and Bank of Communications Co<601328><3328> have been assigned as underwriters for the sale.

Up to now, the only non-financial Chinese company to have issued U.S. dollar-denominated bonds on the interbank market was China National Petroleum Corp.

The proceeds from the bond issuance will be used to acquire overseas assets, according to the report.

In September, Sinochem reportedly offered A$2.84 billion to take over Australian agricultural chemical group Nufarm Ltd.