Jan. 13, 2012 (China Knowledge) - Inner Mongolia
Yuan Xing Energy Co<000683
>, principally engaged in the manufacture and sale of chemical and coal products, has announced plans to issue RMB 1 billion worth of corporate bonds with a maturity of five years on the interbank market starting from January 17 to January 18, sources reported.
Coupon rate will be in the range of 7.60% to 8.10%. The issuer plans to issue RMB 200 million of bonds via online and the remaining RMB 800 million of bonds via offline.
China Chengxin International Credit Rating Co Ltd has rated the issuer and bonds AA and AA, respectively.
Ping An Securities, the securities arm of China's second-largest insurer, Ping An Insurance (Group) Co<601318
>, will be responsible for the unsecured bond issue.
RMB 200 million of the proceeds from the issuance will be used to repay bank loans and the remaining RMB 800 million is to replenish working capital, said the issuer.
issuer's average net profit attributable to shareholders in 2008, 2009 and 2010 was RMB 373 million. The company's debt/asset ratio had reached 45.38% as of September 30, 2011.