Sinoma gets nod on RMB1.7B note issue, to resume

China National Materials (01893) (Sinoma) said it has recently obtained the approval from the National Association of Financial Market Institutional Investors for the proposed issue medium-term notes with a total amount of RMB1.7 billion on the inter-bank bond market in the PRC.

The notes will be issued with an interest rate of 4.69% and with a term of 5 years in single or multiple tranches.

Trading in the stock will be resumed tomorrow.

The issue of the notes will provide the company with a further source of medium to long-term funding at an interest rate which is expected to be more favorable than that generally available from loans from commercials banks, Sinoma said. It considers that the issue of the notes will lower the costs of borrowings and improve the debt structure of the company.

From China Cement (2010-3-5)