China TieTong plans $250m bond issue

01 Sep 2006

State-owned China TieTong Telecommunications plans to issue a one-year-term bond worth 2 billion yuan ($250 million) on August 30.

The funds raised will be used to build telecommunications networks in the country, regional networks and special networks for railway telecommunications, the company said.

Bank loans are now the major source of Tietong's short-term cash flow, and the company said a bond issue would help reduce financing costs.

The bond, underwritten by the Bank of Communications and CITIC Securities Company, will be sold at a discount rate. China Chengxin Credit Management has given the bond an 'A-1' rating.

There are currently four big telecom operators in the Chinese market, China Telecom, China Mobile, China Unicom and China Netcom, and two smaller players - China Tietong and China Satcom.

Related content

Follow Telecom Asia Sport!
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.