Guoxin Energy Plans Up to 4 Billion Yuan in Perpetual Bonds and Notes

Guoxin Energy (600617) said on September 7 that it plans to privately place up to 2 billion yuan of perpetual corporate bonds and register up to 2 billion yuan of perpetual medium-term notes, according to Jiemian News. The company said the two financing tools are intended to lower funding costs, broaden financing channels, improve its debt structure and guard against liquidity risks. After deducting issuance expenses, the proceeds are expected to be used to replenish working capital at the company and its subsidiaries, repay interest-bearing debt at the company and its subsidiaries, fund project construction and for other purposes permitted by law. The perpetual corporate bonds would be issued to professional investors on the Shanghai Stock Exchange, while the perpetual medium-term notes would be issued to institutional investors in China's interbank bond market. Both instruments would be unsecured and would not be offered first to existing shareholders.