China Economic Scan Weekly Debt Market Review

The CSI Enterprise Bond Index started the week at 117.39, and droppedsharply for a brief moment late Monday to 116.75 before climbing to theweek’s close of 117.74.

The CSI Enterprise Bond Index started the week at 117.39, and dropped sharply for a brief moment late Monday to 116.75 before climbing to the week’s close of 117.74. The Shenzhen Corporate Bond Index started the week at 130.45, and reached a high of 130.64 before closing the week at 130.62.

Jiang Jiemin, Chairman of PetroChina Company Limited, said Tuesday that PetroChina plans to raise 100 billion yuan ($14.71 billion) through debt financing in 2009 to support major strategic projects including oil exploration and development, oil refining and overseas business.
Beijing-based CNPC sold $1 billion of three-year floating- rate notes on May 12. The notes, part of a $3 billion borrowing plan to fund overseas projects, were priced to pay 62 basis points more than the London interbank offered rate.

China’s Ministry of Finance (MOF) said last Friday it would issue 91-day treasury bonds with a face value of 15 billion yuan ($2.2 billion) from May 11 to 13. The issue price, set by competitive bidding, was 99.793 yuan. The annual yield was 0.85%, and interest would be calculated from May 11 and paid in a lump sum at maturity.

Lending in China was up 26% year on year 591.8 billion yuan ($86.7 billion), the central bank said on its Web site, about a third of the record 1.89 trillion yuan in March. M2, the broadest measure of money supply, rose 26% from a year earlier.

Bank of China (BOC) recently approved syndicated loans worth nearly 20 billion yuan ($2.93 billion), which will be provided to COSCO Container Lines Co Ltd (COSCON) in the next 3 years. BOC will grant a credit line of $1.75 billion in the coming 2 years for the construction and operation of 28 COSCON container vessels. It will offer $1 billion in liquidity loans in the next 3 years to help cover COSCON’s operating costs.

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