China: Tsingtao Brewery targets expansion with 1.5 bln yuan bond offering

Tsingtao Brewery Co Ltd, China's largest beer producer, said it will issue 1.5 bln yuan worth of six-year bonds with warrants, according to XFN-ASIA, March 31.

In a statement filed with the Shanghai Stock Exchange, the company said the bonds will have a face value of 100 yuan with subscribers to receive 7.0 call warrants for every bond taken up.

The option price for the warrants was set at 28.32 yuan per A-share.

The coupon will range from 0.8-1.5 pct, and the final rate will be set via a book-building process, the company said.

Guotai Junan Securities will be the main underwriter for the issue.

The company will use the proceeds to help fund new beer production facilities as well as to expand existing ones.

(1 usd = 7.0 yuan)

02 April, 2008