China Trade Information

China Telecom<728>, the nation’s largest fixed-line operator, is planning to raise up to RMB 50 billion via a corporate bond offering, sources reported.

This is the first financing program launched after it acquired China Unicom’s<600050><762> code-division multiple access (CDMA) mobile-phone operations.

Industry insiders familiar with the situation indicate the move is to fund the company’s CDMA deal with China Unicom, which involves total investment of RMB 110 billion.

Reportedly, China Telecom has decided to enlarge the fundraising size to RMB 80 billion. However, the plan is still subject to shareholders’ approval.

China Telecom has not nailed down any details of the bonds offering, said Wu Andi, CFO and Executive Vice President of the company. However, he noted that the company would seek a fundraising channel with lower cost.

Wang Xiaochu, Chairman of the Board and CEO of China Telecom, noted the company’s asset-capital ratio is lower than 30% at present, which provides possibility for the company to launch fundraising program in the future.

Tags: CDMA, China-Telecom, China-Unicom

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