China Guodian to issue RMB 5 bln short-term bonds

Sep. 17, 2008 (China Knowledge) - China Guodian (Group) Corp, parent of GD Power Development Co Ltd<600795>, announced on Wednesday it will issue RMB 5 billion short-term bonds with a maturity of 365 days on the interbank market on Sep. 24.

The company said in a statement that this batch of bonds will be issued at the face value and the coupon rate will be determined during the process of book building.

The bonds will become tradable on Sep.26. The proceeds from the issuance will be used to supplement working capital, optimize financial structure and reduce financial costs, according to the company.

Dagong Global Credit Rating Co has rated the issuer and the bonds AAA and A-1 respectively.

The Industrial & Commercial Bank of China (ICBC)<601398><1398> and China Construction Bank Corp (CCB)<601939><939> have been assigned as major underwriters for the sales.

China Guodian is one of the five largest power generation groups in China. As of the end of June this year, it had installed power generation capacity of 61.767 million kilowatts, accounting for 9% of the country's total, including 55.6755 MW thermal, 4.3604 MW hydro, and 1.7041 MW wind power. Its total assets amounted to RMB 284.3 billion, according to China Knowledge's earlier report.