South Cement Co to issue short-term bills, China

South Cement Co, owned by China National Building Materials Co, has announced it plans to issue CNY1.5bn (US$240m) in short-term bills with a maturity of 365 days in the interbank market on 12 November.

The company said in a statement that the bills will be issued at face value, and the coupon rate determined in the process of book-building. Both value and payment due date are set on 13 November and the to-be-issued bills tradable 14 November.

CNY200m of the proceeds from the issue will be used to replenish working capital while the remaining CNY1.3bn to repay bank loans, the issuer said.

Shanghai Brilliance Credit Rating & Investors Service CO Ltd has rated the issuer bills AA+ and A-1, respectively. China Construction Bank Co has been hired as lead underwriter and bookrunner. Bank of Shanghai will be the joint lead underwriter for the offering.