Sinopec Approved to Issue RMB 20 Bln in Bonds

Sinopec Corp<600028><0386>, the largest refiner in Asia by capacity, announced today that it has received approval from the China Securities Regulatory Commission to issue up to RMB 20 billion of bonds.

The company said in a statement that it plans to issue RMB 10 billion in five-year bonds whose coupon rate will be set between 3.90% and 4.50% and RMB 10 billion in ten-year bonds whose coupon rate will be between 4.30% and 5.00%.

Proceeds from the offering will be used to replenish the company's working capital.

Sinopec said earlier that it and Japan-based Mitsui Chemicals Inc has set up a 50-50 joint venture to start a petrochemical project in China. The JV, named Shanghai Sinopec Mitsui Elastomers Co, will build and operate an ethylene-propylene diene terpolymer, or EPT, plant with annual output capacity of 75,000 metric tons at Shanghai Chemical Industry Park, China Knowledge reported earlier. (China Knowledge, Edited by Topco)