Daqin Railway Co. Ltd (601006) made an announcement on 30 May regarding its sale of corporate bonds. The company plans to issue up to RMB 15 bln in corporate bonds in China. Funds raised from the issuance will be used to buy HXD high-power AC electric locomotives and C80B wagons.

The company stated that these bonds can be sold to shareholders of the company's domestic A-shares. The corporate bonds will have a maturity of seven to ten years, with either fixed or variable terms. More details regarding the issuance like timing and scale will be subject to shareholder authorization, relevant regulations and prevailing market conditions.

Source: China Securities Journal

Date: 30 May 2008

CN01/DM/MM/KM