China Knowledge reported that State Grid Corp of China, the nation largest power supplier will auction CNY 15 billion of fixed rate corporate bonds on the interbank market.

The company said in a statement that the bonds include a CNY 10 billion in 10 year bonds and another CNY 5 billion in 15 year bonds. Coupon rate for the 10-year bonds will be the Shanghai Interbank Offered Rate plus basic spread that has been set between 10 and 90 basis point. The coupon rate for the 15 year bonds is SHIBOR plus basic spread is set up to maximum of100 bp.

The bonds will be issued at face value and will take place from December 8 to December 9.

China Lianhe Credit Rating Co Ltd has rated the issuer and bonds AAA and AAA, respectively. CITIC Securities Co, Yingda Securities, Southwest Securities, Goldman Sachs Gao Hua Securities Co, Everbright Securities and GF Securities will be joint lead underwriters for the issue.

The power distributor plans to use CNY 10 billion of the proceeds to fund 18 projects, CNY 3 billion to replenish its working capital and the remaining CNY 2 billion to repay bank loans.

(Sourced fro China Knowledge)