China Knowledge reported that Datong Coal Mine Group Co Ltd, the parent of Datong Coal Industry Co Ltd will issue CNY 4 billion worth of corporate bonds with a maturity of ten years on October 24.
The company said in a statement that the bonds will be issued at face value, and the coupon rate be determined during the process of book building.
China Chengxin International Credit Rating Co Ltd has rated the issuer and notes AAA and AAA respectively.
The company plans to use CNY 1.5 billion of the proceeds to fund a coal project in Datong, Shanxi Province, CNY 900 million to finance a power project, CNY 800 million to repay bank loans and CNY 800 million to replenish its working capital.
Cinda Securities Co has been hired as lead underwriter for the offering, and Soochow Securities will be joint-lead underwriter.