China Netcom plans $4.65b bond issue
China Network Communications (Netcom) Group, the country's fourth-largest telecommunications operator, is planning to raise five billion yuan (HK$4.65 billion) by issuing yuan-denominated corporate bonds to domestic investors.
'We've applied to the relevant regulators and are waiting for their approvals,' a China Netcom Group spokeswoman said.
She declined to provide details of the plan.
China Netcom Group is hoping to receive the green light from regulators as early as next week.
If the deal goes through, it would be the first bond issue by the carrier since its formation in May last year.
Several other mainland companies also have plans for multi-billion-yuan bonds.
Beijing Capital International Airport is seeking to raise as much as 13 billion yuan in a bond issue, while China Petroleum and Chemical Corp, the country's second-largest oil and gas producer, is planning to raise 3.5 billion yuan through a 10-year bond sale.
China Netcom Group was formed last year to take over assets in 10 northern provinces previously controlled by China Telecom, which had a monopoly on the country's fixed lines.
The carrier merged with smaller IP backbone carriers China Netcom Corp - also known as Little Netcom - and Jitong Network Communications.
The proceeds from Netcom's bond offer will be used to finance upgrades and expansion of the carrier's intra-provincial and inter-provincial networks.
According to a source, the carrier hopes to launch the bond issue by the end of this year.
But the China Netcom Group spokeswoman said the timing of the bond issue would depend on regulatory approvals.
According to China Securities News, China Netcom Group is planning to issue four billion yuan of 10-year fixed-rate bond and a one billion yuan 10-year floating rate bond.
A 5 billion yuan 10-year floating rate bond issued by Guangdong Mobile in 2001 is currently trading at 3.73 per cent.
