CNNC may make record bond issue for expansion

BEIJING - China National Nuclear Corp (CNNC), the nation's largest atomic plant operator, may issue a record amount of bonds to finance expansion, even as Japan battles to prevent a reactor meltdown, according to its top official.

"The nuclear accident won't have any serious impact on China's nuclear industry and we won't alter our long-term development plans," CNNC President Sun Qin said in an interview in Beijing on Monday. The company, based in Beijing, plans to sell more bonds to fund overseas acquisitions and to diversify its funding sources, he said.

CNNC sold 4 billion yuan ($609 million) in notes this year, matching a record it set in 2009, according to data compiled by Bloomberg. The relative yield on its 4.9 percent 2019 notes rose 8 basis points to 197 basis points since Friday's earthquake damaged reactors in Japan, according to Chinabond prices. The spread on similar-maturity 4.375 percent euro-denominated bonds sold by Areva SA, the largest provider of nuclear equipment and services, widened by 55 to 188, according to prices from BNP Paribas SA.