After Daqin Railway Co. Ltd (601006) made a collective purchase of coal transport wagons and electric locomotives in early April, the company recently decided to purchase 8,000 more C80B stainless steel coal transport wagons with a budget of RMB 4.4 bln.

While purchasing wagons to expand its transport capacity, the company is also actively engaged in raising funds. The company decided to issue up to RMB 15 bln in corporate bonds, which can be purchased by shareholders of the company’s A-shares. Funds raised from this issuance will be used to pay for HXD high-power AC electric locomotives and C80B wagons.

Source: Securities Times

Date: 30 May 2008

CN01/MZ/MM/KM