Xinjiang Tianshan Cement Co to issue CNY500m notes

Xinjiang Tianshan Cement Co, based in China's Xinjiang Uygur Autonomous Region said on Thursday that it would float CNY500m (US$4m) in unsecured notes with a maturity of three years on June 6, 2013.

According to the company, it would use CNY250m of the proceeds to boost working capital and the remaining CNY250m to repay bank loans. By the end of September 2012, the company's undue bank loans stood at CNY1.442bn.

Xinjiang Tianshan Cement said that the notes will be issued at face value, and the coupon rate determined in the process of book-building. Both value and payment due date have been set for June 7, and the to-be-issued notes tradable as of June 8.

China Lianhe Credit Rating Co Ltd has rated the issuer and notes AA and AA, respectively. China Development Bank has been hired as lead underwriter and book-runner for the offering. This will be the first issue of medium term notes by the company for this year.