Mainland apparel maker Hongdou Group's plan to sell the country's first long-term private corporate bonds has stalled after it failed to find a bank to act as the deal's guarantor. Hongdou, based in Wuxi, Jiangsu province, last year received a quota from the National Development and Reform Commission to sell up to 700 million yuan of bonds. It was the first private firm to get a quota for corporate bonds with maturity of more than one year. 'We are trying our best to make it happen before the end of this year,' said Meng Xiaoping, the company secretary of Shanghai-listed unit Jiangsu Hongdou Group. 'We are still dealing with issues like finding a bank as a guarantor.' Of 43 firms approved to sell 60.8 billion yuan worth of long-term corporate bonds this year, only six with 5.1 billion yuan of quota launched their deals, including Hongdou. A company usually needs to issue the bonds within one year after receiving the quota. Hongdou said it may delay the bond sale. 'Finding a guarantor is not a unique problem for privately held companies when issuing bonds,' said a bond underwriter in Shanghai. 'State-owned enterprises have the same problem too.' Under China's corporate bond rules, all issuers are required to find underwriters and guarantors for the sale. Guarantors assume all liabilities in case of default. Commercial lenders and brokerages, which provide most of the guarantees for corporate bonds, are taking a more cautious approach especially on private firms such as Hongdou Group. 'Hongdou talked to us,' said a manager of a leading Shanghai brokerage's fixed-income division. 'We took a look at their assets and decided to give it up.' The company has picked a securities house in Shanghai to underwrite the bonds, Ms Meng said. 'It's a slow process and we are still on the way,' she said. 'We changed the total amount of money raised from 700 million yuan to 500 million yuan simply to keep it in line with our needs.'