China Knowledge reported that Shanxi Coal Transportation and Sales Group Co a large scale modernized coal logistics group based in Shanxi Province began issuing CNY 2.5 billion worth of unsecured corporate bonds with a maturity of ten years on the interbank market from January 18 to January 20.

Coupon rate for the first seven years will be 5.94%, and the issuer has rights to redeem these bonds.

China Lianhe Credit Rating Co Ltd has rated the issuer and bonds AAA and AAA, respectively. Haitong Securities Co Ltd, China second largest publicly traded brokerage firm, has been assigned as the lead underwriter while Galaxy Securities will be the joint lead underwriter.

Hong Yuan Securities Co Ltd, Cinda Securities and HengTai Securities will be the distributors in the offering.

CNY 1 billion of the proceeds from the issuance will be used to fund a coal project in Shanxi Province, CNY 500 million to develop another coal project in the same province, CNY 500 million to repay bank loans and CNY 500 million to replenish working capital.

(Sourced from China Knowledge)