Companies

Huijin nodded for 54b yuan sale of bonds:rpt

(Agencies)
Updated: 2010-08-17 15:27

Central Huijin Investment Co, the state company that controls China's largest banks, won central bank approval to sell 54 billion yuan ($8 billion) of bonds on Aug 24, according to a person with knowledge of the matter.

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The domestic arm of China Investment Corp, the nation's sovereign wealth fund, plans to sell as much as 26 billion yuan in seven-year bonds, and up to 28 billion yuan in 20-year debt in a first round of planned bond sales, the person said.

Huijin will sell a combined 187.5 billion yuan of bonds to invest in rights offerings planned this year by China's three largest banks, the person said, asking not to be identified as details are private. Industrial & Commercial Bank of China Ltd, China Construction Bank Corp and Bank of China Ltd this year announced plans to raise as much as 180 billion yuan through rights offers.

Huijin didn't immediately respond to a fax seeking comment. A phone number on Huijin's website refers callers to another number, which didn't connect. No one answered calls to the People's Bank of China's press department.

The bonds will be treated by investors like debt sold by China's policy banks, the person said. A group of banks led by Agricultural Bank of China Ltd, China Development Bank, China International Capital Corp and China Galaxy Securities Co will underwrite the Huijin bond sale, the person said on Aug 10.

Proceeds will also be injected into Export-Import Bank of China, which provides trade financing on behalf of the government, and China Export and Credit Insurance Corp, known as Sinosure.