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China's Huijin to issue 120b yuan bonds

2010-07-06 13:55

BEIJING: Central Huijin Investment Co, the domestic arm of China Investment Corp, the country's sovereign wealth fund, plans to issue at least 120 billion yuan ($17.71 billion) in bonds, three sources close to the matter told Reuters on Tuesday.

The bonds will be issued in different batches in the onshore interbank market after the initial public offering of Agricultural Bank of China this week, the sources said.

Central Huijin, the largest shareholder of China's State-controlled banks, needs fresh funds to buy additional shares being offered by Bank of China and China Construction Bank.

Local media reported in May that the State Council, China's cabinet, had approved a combined 287 billion yuan fund-raising quota for the country's four biggest lenders.

Huijin also needs cash to recapitalise the Export-Import Bank of China and China Export and Credit Insurance Corp.

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