China's Sinotrans registers RMB 2.3 billion tranche of short-term debt

By Marisa Wong

Madison, Wis., Sept. 1 - Sinotrans Ltd. said that it registered its first tranche of debt financing instruments on Aug. 24. The principal amount of this first tranche of short-term financing bills is RMB 2.3 billion. The bills will mature 366 days from Sept. 9, 2011.

Sinotrans said it received shareholder approval in June for the issue of debt financing instruments to investors in mainland China or Hong Kong. The company first announced the planned debt financing instruments in April.

The total outstanding principal amount of the securities will not exceed 40% of the company's audited net assets, which was calculated to be RMB 4.8 billion using the company's net assets as of Dec. 31, 2010.

Proceeds from the first tranche will be used to repay borrowings and replenish working capital.

Sinotrans is a Hong Kong-based shipping company.

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