Chinese shipuilding giant to raise $512.5 million

Chinese shipbuilder China Shipbuilding Industry Corporation (CSIC) has gained approval from the National Development and Reform Commission (NDRC), China's top economic planner, to issue CNY 3.5 billion (about US$ 512.5 million) in corporate bonds from September 3, 2008.

CITIC Securities Co., Ltd. and CITIC Jiantou Securities Co., Ltd. are the co-lead underwriters and co-sponsors. China Aerospace Science and Technology Corp. provides irrevocable joint liability guaranty for the bonds.

The proceeds will be mainly used for three projects, including the Qingdao Haixi Bay Shipbuilding Base, expansion of medium speed marine diesel engine activities at Shaanxi Diesel Engine Heavy Industry Co., Ltd. and the expansion low-speed marine diesel engine activities at Yichang Marine Diesel Engine Plant.