500 mln yuan of private placement bond issued
- Details
- Category: Ningbo Business
- Published: Monday, 29 October 2012 08:54
Ningbo Development and Investment Group successfully issued its first sum of non-public targeted bond in the inter-bank market recently. It is learned that it is the first time in Ningbo to issue that kind of bond.
Ningbo Branch of Industrial Bank is the main underwriter for this sum of bond, whose bond period is only one year with an interest rate of 5.5 percent. The raised funds will be used in replacing corporate bank loans and in making up the liquidity gap.
Non-public targeted bond in the inter-bank market, also called private placement bond, is circulated and transferred among special agents and investors. Compared to public offering bond, the issuing of private placement bond is more flexible and more convenient. It also undergoes simplified information disclosure requirements and is limitedly circulated, which can meet the specific demands of investors. It can also help widen financing channels and lower financing cost, thus to improve financing structure by raising the ratio of direct finance.
