Shanxi Coal Transportation and Sales Co, the largest coal distributor in China, yesterday announced that it will issue RMB 1 billion in medium-term notes with a maturity of five years on the inter-bank market on Dec. 31, 2010, sources reported.
The company said in a statement that this batch of notes will be issued at face value and the coupon rate will be determined during the process of book building.
RMB 900 million from the proceeds will be used to pay back bank loans, while the remaining RMB 100 million will be allotted to replenish its subsidiary's working capital, according to the firm.
China Lianhe Credit Rating Co Ltd has rated the notes and the issuers as AAA and AAA, respectively.
China Merchants Bank has been hired to handle the sale.
Reportedly, the company in April had floated RMB 1 billion in five-year notes with coupon rate of 4.08%.
