Shandong Weiqiao Pioneering Group Co Ltd had recently announced that it is going to issue RMB 1 billion in short-term bills having a maturity period of one year on the inter-bank market which is an exclusive financial market where banks borrow short-term funds from other banks having excess liquidity, on January 5, next year.
China’s largest cotton textile producer Weiqiao Textile Co Ltd is a subsidiary of Shandong Weiqiao Pioneering Group Co Ltd.
According to the company, the short-term bills are going to be issued at nominal value and the coupon rate is likely to be calculated through book building, a process where the potential institutional investors determine the optimum offering price for a new issue of stock.
It has been decided that RMB 800 million from this issue, will be utilized for buying cotton and the rest of the RMB 200 million will be assigned for purchasing coal to secure the raw material supply for the company’s thermal power plant.
Dagong Global Credit Rating Co Ltd has given a rating of A-1 for the short-term bills and AA- for Shandong Weiqiao.