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Zhong Lun Advises on Issuance of RMB6 billion Corporate Bonds by China Railway Group Limited
Zhong Lun Advises on Issuance of RMB6 billion Corporate Bonds by China Railway Group Limited
China Railway Group Limited, China’s biggest construction company by assets, issued RMB6 billion (US$879 million) of domestic corporate bonds (Tranche I) on January 27, 2010.
China Railway Group Limited issued five-year bonds with a principal amount of RMB1 billion at an interest rate of 4.48 percent and RMB5 billion of 10-year bonds at an interest rate of 4.88 percent to adjust its debt structure, repay loans and replenish its working capital.
Approved by the China Securities Regulatory Commission in September 2009, the bond sale is the first of two installments involving as much as RMB12 billion of bonds.
Zhong Lun advised the joint sponsors (lead underwriters), BOCI Securities Limited and UBS Securities Co. Limited, on the issuance. Partner Ye Beicheng led a service team which also included partner Li Hairong and associates Xu Kai, Wang Wanjun and Jia Yong.
