In a statement filed with the Shanghai Stock Exchange on 28 May, SAIC Motor Corporation Limited (600104) declared its intent to issue up to RMB 8 bln mid-term corporate notes. The issuance will be divided into two tranches with the first issuance to be no more than RMB 4 bln.

The company elaborated that in order to diversify its financing channels, improve its liabilities structure, reduce interest expenditures and realise sustainable development for the company, it was decided to offer two issuances of three-year corporate notes totaling RMB 8 bln. Funds raised from this issuance will primarily be used to repay the outstanding loans of its subsidiaries, and to fund its future expansion in production and operations.

Source: China Securities Journal

Date: 28 May 2008

CN01/MZ/MM/KM