July 14, 2009 / 10:38 AM / 10 years ago

China watchdog approves first corp bond in 10 mths-IFR

HONG KONG, July 14 (Reuters) - China’s securities watchdog has approved a bond issue by Shanghai Yuyuan Tourist Mart (600655.SS) of up to 1 billion yuan ($146 million), IFR Asia reported, reopening the corporate bond market which has been suspended for 10 months.

The company received the green light from the China Securities Regulatory Commission (CSRC) on July 13, the first such permission since September last year, IFR said on Tuesday, without citing sources.

There are around 35 companies for a total issuance of more than 115 billion yuan in the pipeline. Those deals been initially approved by the CSRC but are still waiting for the administrative permits to tap the bond market, it said.

Yuyuan will issue a 5-year 500 million yuan bond this week first and it will tap the market again with a 500 million bond within the next two years.

The Shanghai-listed retail tourist shopping mall operator will use the proceeds to finance expansion and for working capital.

Existing shareholders will not have pre-emptive rights to the bond issue, IFR said. For the first tap, 10 percent of the deal is slated for online subscriptions on July 17 while the rest is earmarked for institutional investors between July 17 to 21.

Indications are between 5.55 percent and 5.95 percent.

Haitong Securities, the lead manager, will conduct roadshows on July 15 and 16 and follow by bookbuilding on July 16, it added. ($1=6.832 Yuan) (Reporting by Alison Leung; Editing by Jan Dahinten)

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