China Petrochemical issuing corporate bonds

20 Feb 2008 • by Natalie Aster

China Petrochemical today issued a notice by the China Securities Regulatory Commission, the Securities and Futures Commission word [2008] 176 of the text approved, the company will soon issue not more than 30 billion yuan, a period of six years from trading convertible bonds, and eventually subscribe to the bonds distribution of the bond attached warrants. According to the bond coupon rate will bookkeeping record of results and the Internet, the network of purchase, in the 0.8% -1.5% range within the framework of Inquiry finalized.

Separation indebted to the face value of 100 yuan / Zhang parity issue, "AAA" credit rating, an annual interest paid by the China Petrochemical Corporation to provide unconditional irrevocable guarantee security jointly and severally liable.

Apart from this issue to the China Petroleum and Chemical Corporation companies outside the original A shares, 0.429 yuan per share placement of convertible bonds from the proportion of transactions carried out in full priority placement. Placing priority after the balance will be used online, network changes compared with the new issue online, the network issued for the default ratio 50%, and in accordance with the Internet, the actual purchase network, according to Network and the success rate of placement of network convergence principle is the ultimate online and the number of issued under.

The bonds issued for each ten (1,000 yuan) for the primary, and at the same time the separation transactions to the convertible bonds were issued with the final subscription, every hand to the ratio of 101, distributed free of the 24-month renewal of mandate equity card. These warrants, the right to a 2:1 ratio, the holder has the right warrants listed in the warrants full 24 months before the date of the five trading days to 19.68 yuan / share price of the initial trip to the right, A subscription China Petrochemical shares. C of E survival period, the right to visit the right price and the proportion of shares will be first priority, the dividend to be adjusted accordingly.

The separation transactions debt issued to raise funds will be used to send the East River gas project, Tianjin 1 million tons / year ethylene project, Zhenhai 1 million tons / year ethylene project and to repay bank loans early input; this issue C of E to the right part of the fund-raising will be used for Tianjin 1 million tons / year ethylene project, Zhenhai 1 million tons / year ethylene project, Wuhan ethylene project, the repayment of bank loans in advance or added liquidity.

China Petrochemical shares will be suspended for one hour today, and the February 20 day suspension for priority placement and the Internet, the network of purchase.

After the end of this issue, the China Petrochemical will be as soon as possible to the Shanghai Stock Exchange for listing transactions.