Shanghai Dazhong eyes bonds, loans for up to RMB 30 billion

By William Gullotti

Buffalo, N.Y., April 25 – Shareholders of Shanghai Dazhong Public Utilities (Group) Co., Ltd. will vote on board proposals for bond offerings and credit facilities for up to RMB 30 billion at the upcoming annual general meeting, according to a circular on Tuesday.

The company and its subsidiaries are seeking approval to apply to banks and other financial institutions for a total comprehensive credit line of no more than RMB 18 billion. The varieties of comprehensive credit line include, but are not limited to, short-term working capital loan, medium- and long-term borrowings, bank acceptance bill, guarantee, letter of credit, project loan and mortgage loan.

Proceeds of the credit facilities will be used for business development.

The company proposes offering up to RMB 5 billion of corporate bonds and overseas bonds in tranches with tenors not to exceed 10 years. The approval for the corporate bonds will remain effective for 36 months following the AGM.

Also proposed are offerings of up to RMB 3.5 billion of medium-term notes and RMB 3.5 billion of short-term and super short-term commercial paper. The proposed paper and note offerings may also be issued in tranches.

Proceeds from the proposed offerings will be used to meet operational needs, to adjust the company’s debt structure, to repay debt, to supplement working capital and/or for project construction.

The annual general meeting is scheduled to occur at 2 a.m. ET on June 28.

Shanghai Dazhong is a holding company operating in urban transport, city gas, environmental and municipal businesses. It is based in Shanghai.

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