A 300 million yuan 3 year corporate bond has been floated on the Shanghai Stock Exchange. This bond issued by Hongshi Holding Group is for the funding of equipment for a cement plant in Laos. The cement is for use in the building of the one belt road initiative.
The plant is expected to produce a daily capacity of 5,000 tons per day. With China’s newest project, to create a polar silk road the cement will be needed.
The bond is a three year note issued at par and set to yield 6.34%. The offering was covered 2.67 times. The China Securities Regulatory Commission (CSRC) is seeking more control over the use of the term, Belt and Road Initiative (CRI) for future issues. Their concerns are over the offshore use of proceeds.