Yantai, Shandong – Directors at Wanhua Chemical confirmed they are planning to issue up to RMB50bn ($ 760m) of “ultra-short-term” bonds, according to China Securities News.
The board met on 18 January 2016 and said it will use the bonds to reduce financing cost, to fund short term working capital. Details of the issue date, interest rate and size of the bond have yet to be decided.
The bonds are likely to be repayable within a year of issue.
Wanhua announced that it would be looking at short-term financing plan for its business, but at that time suggested it would be no more than RMB2.5 bn.