EAST ASIA - COMPANIES Sinopec plans $4 billion bond issue to fund expansion plans

摘要

Sinopec has announced that it will issue 30 billion yuan ($4.18 billion) in bonds, after a significant rise in capital expenditure in 2007 including a growing slate of gas investments. The company expects capital expenditure to reach 110 billion yuan in 2007, a 39% increase on the previous year. Sinopec’s major projects include the Sichuan-Shanghai natural gas pipeline, as well as ethylene plants in Tianjin, Zhenhai and Wuhan. The bond issue signals a major increase in Sinopec’s investment plans, and a shift away from its reliance on bank loans for finance.