The Beijing branch of Industrial Bank Co., Ltd. has just launched the first bonds for ensuring energy supply in China, following a surge in commodities prices and a spate of power restrictions.
On 4 November Industrial Bank’s Beijing branch underwrote an issue of 2 billion yuan in short-term bonds from Fujian Huadian Furui Energy Development Co., Ltd. (福建华电福瑞能源发展有限公司) on the Chinese interbank market.
The “ultra-short-term bonds” have a maturity of 51 days, and will be used for the purposes of ensuring power supply in the Fujian province capital of Fuzhou.
Fujian Huadian said that the 1 billion yuan of the funds raised would be used for the purchase of coal for its power plants that provide energy to cities in Fujian province including Fuzhou and Xiamen, while the remaining funds would be used to repay outstanding debt.
