Aug. 7, 2012 (China Knowledge) - China Communications Construction Co Ltd<601800><1800
>, which operates transportation infrastructure and heavy machinery manufacturing businesses, announced today that it plans to issue RMB 12 billion of bonds from Aug. 9 to Aug. 13.
The company said in a statement that it plans to issue RMB 5 billion in five-year bonds, whose coupon rate will be set between 4.20% and 4.55%, RMB 2 billion in ten-year bonds, whose coupon rate will be set between 4.65% and 5.00%. In addition, the company will issue RMB 5 billion in 15-year bonds with a coupon rate of between 4.90% and 5.25%.
Dagong Global Credit Rating Co has rated the issuer and bonds AAA and AAA, respectively.
UBS Securities and China Merchants Bank<600036
> has been hired as joint lead underwriters for the offering.
Proceeds from the deal will be used to repay debt and replenish the company's working capital.
In the first three months of this year, the company's net profit fell 3.64% YoY to RMB 1.53 billion, and its dropped 5.33% to RMB 50.31 billion.