Gemdale Industries, one of China's leading real estate firms,
announced Wednesday that it plans to issue up to 1.2 billion yuan
(158 million US dollars) in corporate bonds.
This makes Gemdale the first publicly listed company to issue
corporate bonds following the promulgation of procedures on the
issuance of corporate bonds by the China Securities Regulatory
Commission on Aug. 14.
Gemdale said the bonds were valued at less than 40 percent of
its net assets of 3.08 billion yuan at the end of 2006. The capital
raised would be used to repay bank loans, readjust debt structures,
or to supplement working capital.
The outstanding term of the bonds would be at least five years,
and no more than half of the bonds would be sold to the company's
shareholders.
The CSRC procedures adopt an application and approval system,
require no hypothecation, and the issuing price is set by market
consultation, providing a low-cost financing tool for
companies.
Issuers of corporate bonds are restricted to joint-stock
companies either listed on the Shanghai and Shenzhen stock
exchanges or on overseas markets.
(Xinhua News Agency August 22, 2007)
