CHINA National Materials Group Corp yesterday became the first domestic company to issue debenture bonds without a bank guarantee this year amid strong government intention to buoy the corporate bond market.
The five-year bond, worth 500 million yuan (US$71 million) in total, has a fixed face annual interest rate of 6.4 percent. It will be spent on eight projects involving the development of non-metallic mineral resources and inorganic and non-metallic new materials. Total investment will be 1.846 billion yuan. Given "AA" rating by the China Chengxin International Credit Rating, it is also the third debenture bond ever allowed by the government since China officially endorsed the corporate bond market.