TieTong Telecom to issue bond
(Xinhua)
Updated: 2006-08-26 16:59
China TieTong Telecommunications Corporation, a state-owned telecom operator
in China, plans to issue a one-year-term bond worth 2 billion yuan (250 million
U.S. dollars) on August 30.
The funds raised will be used to build
telecommunications networks in the country, regional networks and special
networks for railway telecommunications, the company said.
Bank loans
are now the major source of Tietong's short-term cashflow, and the company said
a bond issue would help reduce financing costs.
The bond, underwritten
by the Bank of Communications and CITIC Securities Company, will be sold at a
discount rate. China Chengxin Credit Management Company has given the bond an
A-1 rating.
There are currently four big telecom operators in the
Chinese market - China Telecom, China Mobile, China Unicom and China Netcom -
and two smaller players - China Tietong and China Satcom.
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