Apr. 19, 2012 (China Knowledge) - Chongqing
Changan Automobile Co Ltd<000625
>, a leading domestic automaker, had announced to issue RMB 1.98 billion worth of corporate bonds with a maturity of five years on the interbank market on Apr. 23.
Coupon rate of the fixed-rate bonds will be in the range of 4.90% to 5.40% and will be determined in the process of book-building. RMB 1.78 billion of the bonds will be issued offline, while the remaining RMB 198 million of bonds online.
Proceeds from the issue 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 AAA and AAA, respectively.
Changan Automobile (Group) Co Ltd, the parent co of the issuer, will provide the bonds issue with unconditional and irrevocable full guarantee.
As of Sep. 30, 2011, the issuer had RMB 14.7 billion in net asset, and its average net profit attributable to shareholders reached RMB 1.06 billion between 2008 and 2010.