RMB 1.8 Bln Corporate Bond Issue Approved

The company has planned to issue up to RMB 1.8 bln worth of corporate bonds with maturities ranging from 3 to 5 years. Pursuant to approval from the 4th 2008 Extraordinary General Meeting of Shareholders, it has been proposed that the bonds be sold in either a single or multiple issues. The coupon rate is to be fixed and payable annually, with the principal to be reimbursed with the final payment. In accordance with the relevant board resolution, the bonds can be allotted to holders of the company's A-shares in consideration of prevailing market conditions.

Proceeds from the bond issue will be used for loan repayment, debt restructuring and to supplement working capital. The proposal regarding the sale is valid for 24 months from the date of approval by a general meeting of shareholders. The board will petition the meeting for the authority to address matters related to the issuance and listing of the bonds in question.

Board of Directors
22 Oct 2008


Source: Securities Times

Date: 22 Oct 2008

CN01/NW/DM/JE