Breaking News, World News and Taiwan News.

CPC issues NT$15.4 billion worth of unsecured bonds

TAIPEI, Taiwan -- To satisfy the state-run oil company's working capital requirements, CPC Co. (中油) yesterday announced that it has issued NT$15.4 billion worth of unsecured bonds.

The company stated that the debentures issue represents the initial phase of its plans to raise capital, adding that a second round of bond issues may commence in August to raise an additional NT$14.6 billion.

The NT$15.4 billion initial phase bond issue is comprised of NT$8.4 billion worth of 5-year bonds with a coupon rate of 1.41 percent, NT$2.1 billion worth of 7-year bonds with a coupon rate of 1.65 percent, and NT$4.9 billion worth of 10-year bonds with a coupon rate of 1.85 percent.

According to the company, the newly raised capital will be allocated toward bolstering CPC's routine fixed assets, plant and equipment investments, in addition to securing rights to harvest natural gas and oil abroad and bolstering the company's financial condition.

CPC Co. stated that the company is approved to issue NT$30 billion worth of corporate bonds.

Meanwhile, a brokerage company executive stated that CPC's bond issue yesterday further supports the trend of increasingly higher coupon rates for corporate bonds, following precedents set by Hon Hai Precision Industry Co. (鴻海) and Taipower (台電) earlier this year. The trend is likely to set the course for the corporate bond market issues for the second half of this year, according to the brokerage company executive.

Write a Comment
CAPTCHA Code Image
Type in image code
Change the code
 Receive China Post promos
 Respond to this email
WSJA
Subscribe  |   Advertise  |   RSS Feed  |   About Us  |   Career  |   Contact Us
Sitemap  |   Top Stories  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |   Arts & Leisure  |   Health  |   Editorial  |   Commentary
Travel  |   Movies  |   TV Listings  |   Classifieds  |   Bookstore  |   Getting Around  |   Weather  |   Guide Post  |   Student Post  |   Terms of Use  |   Sitemap
  chinapost search