China Merchants Holdings, parent company of red chip China Merchants Holdings (International) (CMHI), is arranging a US$100 million commercial paper issue to finance future development. A source close to the company said most of the proceeds would be used to fund the group's mainland acquisitions. He said projects under negotiation were primarily infrastructure-related. The source said the parent was also looking for investment opportunities but there would be no conflict with its listed arm. CMHI has said it is in discussions over potential investments in toll roads and bridges, but no contracts have been signed. 'We are considering various low-cost financing channels and a commercial paper issue is one of them,' the source said. The one-year $100 million commercial paper was lead managed by ABN-Amro Bank and Credit Suisse First Boston. Banque Nationale de Paris, Sumitomo Bank and Bank of Communications New York branch also participated.