Jilin issues bonds for petrochemical complex

22 January 1996 00:00  [Source: ACN]

JILIN Chemical Group, the parent of Hong Kong-listed Jilin Chemical Industrial (JCI), is to issue Rmb800m (US$96.1m) in corporate bonds in Q1 of this year.

Proceeds from the issue will be used to finance the construction of a 300 000 tonne/year ethylene plant in Northeast China, with a total investment of Rmb15.2bn. The group will fund seven of the 11 planned facilities, while JCI will undertake the rest.

Analysts said the financial performance of JCI would hinge on the ability of its parent company to raise funds because JCI would sell products from its facilities as feedstock for the seven downstream units.

The bond issue received approval in principle from relevant authorities in August, though the issue amount has been scaled back from Rmb1bn to the present Rmb800m.

The bonds will be listed in Shanghai and will carry interest of 15%, with no inflation subsidy. They will be issued in scripless form through stock exchange computer networks.

The issue will be underwritten by the group's finance company, as lead underwriter,and Shanghai Shenyin Securities, as co-underwriter.

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