Chalco to Issue RMB 1.5 Bln in Notes

BEIJING, Sept. 6 (China Knowledge) -- Chalco, or Aluminum Corp of China Ltd, the nation's largest aluminum producer, announced that it will issue RMB 5 billion in medium-term bills with a maturity of five years on the inter-bank market on Sep. 8, 2011, sources reported.

The company said in a statement that the coupon rate will be determined in the process of book building.

Both value date and payment due date will be Sep. 9, and the to-be-issued notes will become tradable on Sep. 12.

The company will use the proceeds from the deal to replenish working capital.

China Chengxin International Credit Rating Co Ltd has rated the notes and the issuer as AAA and AAA, respectively. China Development Bank will be lead underwriter for the issue, Bank of China Ltd will be joint lead underwriter for the deal.

Chalco last month reported RMB 412.58 million in net profit attributable to shareholders for the first half of this year, reflecting a year-on-year plunge of 22.24%, principally due to an impairment loss of RMB 273 million caused by the termination of a bauxite project in Aurukun, Australia.