Jan. 31, 2012 (China Knowledge) - Yuchai Group, the parent company of New York-listed China Yuchai International Ltd<CYD
>, a leading diesel engine maker in China, intends to issue RMB 500 million worth of 366-day unsecured bills on the interbank market on February 2, sources reported.
Coupon rate will be determined in the process of book-building. Both value date and payment due date will be February 3, and the to-be-issued bills are tradable on February 6.
Proceeds from the issuance will be used to repay bank loans and replenish working capital, said the issuer.
China Lianhe Credit Rating Co Ltd has rated the issuer and bills AA and A-1, respectively.
China Development Bank has been assigned as the lead underwriter and bookrunner.
This will be the issuer's first short-term bills this year.
As of September 30, 2011, Yuchai Group had 69.37% in debt/asset ratio. The company earned RMB 11.04 billion in operating revenue in the first nine months of last year, and its gross profit was RMB 578 million in the corresponding period.