Shaoxing Wine Group To Issue 1B Yuan Worth Of Bonds

  Shaoxing Wine Group plans to issue one billion yuan worth of seven-year guaranteed bonds, reports Shanghai Securities News, citing a company report.

The annual interest rate of the bonds was fixed at 5.40 percent for the first five years. Shaoxing Wine Group will raise the interest rate of the bonds at the end of the fifth year.

The value date of the bonds is September 29.

Chinalion Securities was selected as the lead underwriter of the bond issuance.

CCXI Rating granted an AA rating for the seven-year bonds.

Shaoxing Wine Group will use the funds raised from the bond issuance for the construction of China Rice Wine City and an environment improvement project.

Shares of Zhejiang Guyuelongshan Shaoxing Wine (600059), a subsidiary of Shaoxing Wine Group, dropped 2.05 percent to close the morning session at 14.35 yuan.