August 2, 2012

Chongqing Grain Group plans to release US$15.7 million of bills

Chongqing Grain Group Co Ltd will release RMB100 million (US$15.7 million) worth of unsecured 365-day financial bills on August 7, according to a statement from the Shanghai Clearing House.

Both value date and payment due date are August 9 and the bills will be tradable on August 10. The coupon rate will be determined in the process of book-building.

China Merchants Bank Co Ltd will be the lead underwriter of the issuance. Dagong Global Credit Rating Co Ltd has rated the issuer and issuance AA- and A-1, respectively.

Of the proceeds 50% will be used to replenish working capital of its grain oil subsidiary and the remainder will be used to repay bank loans.