By Susanna Moon
Chicago, May 30 - China Yuchai International Ltd. said its main operating subsidiary, Guangxi Yuchai Machinery Co. Ltd., issued RMB 1 billion of 4.69% three-year notes at par.
This is the first tranche of a planned RMB 1.6 billion issue of medium-term notes, approved by China's National Association of Financial Market Institutional Investors, according to a company press release.
China Citic Bank Corp. Ltd. is the underwriter for the first tranche.
Proceeds will be used to repay bank loans and for working capital purposes.
The note issuance is a cost-effective option of raising capital given that China's benchmark one-year lending rate is at 6%, the release noted.
Yulin, China-based Guangxi Yuchai, through subsidiary Guangxi Yuchai, manufactures, assembles and sells light-duty, medium-sized and heavy-duty diesel engines for construction equipment, trucks, buses and cars in China.
| Issuer: | Guangxi Yuchai Machinery Co. Ltd.
|
| Issue: | Medium-term notes
|
| Amount: | RMB 1 billion
|
| Maturity: | May 30, 2016
|
| Coupon: | 4.69%
|
| Price: | Par
|
| Yield: | 4.69%
|
| Underwriter: | China Citic Bank Corp. Ltd.
|
| Issue date: | May 28
|
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