Bonds News
- Yangtze Power allowed to issue bonds
Date: 20-Sep-2007 Sources: (Shenzhen Daily)
THE stock market regulator has approved a 4 billion yuan (US$530 million) bond issue by Yangtze Power Co., its first approval since taking on a major role in debt sales as the government moves to bolster its corporate bond market.
Yangtze Power, co-operator of the world's largest hydropower project at the Three Gorges Dam, said yesterday that the bond issue had won approval from the China Securities Regulatory Commission.
The issue is part of Yangtze Power's plan announced in August to sell as much as 8 billion yuan of bonds within two years. The proceeds will be used to repay loans, boost operating capital and fund acquisitions, Yangtze Power has said.
The securities watchdog in August started vetting listed companies' issuance of bonds with maturities of more than one year, as part of a government effort to expand the country's debt market.
The National Development and Reform Commission, which was previously responsible for all such debt issuance, now only handles issuance by non-listed companies.
Since the rule changes, more than 20 listed firms, including China's biggest listed property developer Vanke, rival developer Gemdale and power generator Huaneng Power have announced plans to raise as much as 36 billion yuan by selling debt.
China is encouraging more companies to sell bonds to reduce their reliance on bank loans and to soak up excess liquidity in the financial system.
In 2005, the government also launched a corporate bill market that allows firms to sell bonds with maturities of one year or less.
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