China Huarong’s shareholders are set to consider a proposal for the asset manager to issue ~RMB 70bn ($10.9bn) of domestic bonds, as per Bloomberg. The issuance would help further enhance its liquidity management and may be through a public or targeted issuance. The issuance will be subject to approval by both, local regulatory authorities and at Huarong’s upcoming AGM on October 21. The proposed bonds will have a tenor not exceeding 10Y, and may be sold as “one issuance or multiple batches of issuance. Huarong’s filing said that proceeds would “increase the source of working capital, optimize the structure of assets and liabilities and promote business development as well as other purposes recognized by competent authorities”.
Huarong’s dollar bonds were marginally higher with its 4.25% Perp up 0.3 to 85.05.