Central Huijin plans raising funds via bond issue

Proceeds worth more than $12mln to be injected to China Eximbank and other state-run lenders.

Central Huijin Investment Co, the domestic investment arm of China's sovereign wealth fund, plans to sell bonds worth at least 80 billion yuan ($11.73 billion) in the interbank market and use the proceeds to fund major commercial lenders and export-oriented financial institutions, sources familiar with the matter said on Tuesday.

The investment unit has already got State Council approval for the bond issue. Central Huijin plans to inject the proceeds of the bond sale into Export-Import Bank of China (China Eximbank), China Export & Credit Insurance Corp (Sinosure) and other State-run lenders, the sources told China Daily on condition of anonymity.

Several underwriters have started work on the bond issue, but it is still not clear how much of the funds will be directed to the two export-oriented lenders, the source said.

The funds will partly help cement the capital base of China Eximbank and Sinosure, as policymakers and regulators are planning to restructure the State-owned trade financier and export credit insurer and rid their balance sheets of bad loans.

Li Ruogu, president of China Eximbank, said in an earlier interview that the lender will continue to be the policy arm of the government supporting export and import development after its business reform. However, a detailed reform plan is still under discussion, he said.

View the full story in Xinhua.