Sep. 8, 2010 (China Knowledge) - Central Huijin Investment Co, the domestic investment arm of the nation's sovereign wealth fund, China Investment Corp, is planning to float RMB 55 billion worth of bonds in mid-September, sources reported.
The state-owned investment arm will issue RMB 20 billion of five-year notes and RMB 15 billion of 30-year bonds on Sep. 16, with options to issue an additional RMB 20 billion.
Previously, Central Huijin said that it would raise an overall RMB 187.5 billion through bonds issuance to acquire stakes in the state-owned commercial banks in order to maintain a certain shareholdings in the latter lenders.
Central Huijin has plans to take part in the subscription of the RMB 45-billion rights issues of the Industrial and Commercial Bank of China<601398
>, the RMB 75-billion rights issues of the China Construction Bank<601939
> and the RMB 60-billion rights issues of Bank of China<601988
> to avoid equity dilution.
Reportedly, it has also planned to buy stakes in the Export-Import Bank of China and China Export & Credit Insurance Corp.