Jul. 27, 2012 (China Knowledge) - AVIC Engine Holding Co, a unit of state-owned Aviation Industry Corp of China or AVIC has announced that it plans to issue RMB 2 billion in super short-term bills with a maturity of 270 days in the interbank market on July 30.
According to a statement, the company said that the bills will be issued at face value, and the coupon rate will be determined in the process of book-building.
Both value date and payment due date will is set on July 31, and the to-be-issued bills are tradable Aug 1.
RMB 1.57 billion of the proceeds will be used to replenish working capital while the rest RMB 430 million will be used to repay bank loans, said the issuer.
China Chengxin International Credit Rating Co Ltd has rated the issuer AAA.
Bank of China (BOC) <601988
> has been assigned as lead underwriter and bookrunner. China Industrial Bank Co Ltd<601166
> will be joint lead underwriter for the offering.
This will be the issuer's first super short-term bill this year.