Aug. 17, 2012 (China Knowledge) - Hongdou Group, the parent company of Jiangsu Hongdou Industry Co<600400
>, has announced it plans to issue RMB 700 million worth of secured short-term bills with a maturity of 365 days in the interbank market on May 22.
The company said in a statement that the bills will be issued at face value, and the coupon rate determined in the process of book-building.
Both value and payment due date is set on Aug 24, and the to-be-issued bills tradable Aug 27.
RMB 108 million of the proceeds from the issue will be used to replenish working capital, while the remaining RMB 592 million to repay bank loans, said the issuer.
China Lianhe Credit Rating Co Ltd has rated the issuer and bills AA and A-1, respectively.
Agricultural Bank of China Ltd<601288
> has been assigned as the lead underwriter and bookrunner for the offering.