Shanghai September 15 (Gasgoo.com) Brilliance Auto Group and China Development Bank (CDB) signed yesterday an agreement over the issue of the short-term bonds amounting to 2 billion yuan ($297 million), Shenyang Daily reported Wednesday.
Brilliance Auto will issue the bonds in the local interbank market worth a total of 2 billion yuan in the next two years. CDB will help with the sales.
The automaker has now sold out the first group of bonds worth 1 billion yuan and will start issuing the second group no later than September 2012.
In pursuit of maximum mutual benefits and realizing optimization of resources deployment, Brilliance Auto signed a financing framework agreement with CDB in October 2009 for as much as 10 billion yuan. At present, Brilliance Auto has received 1 billion yuan from the bank.
Economists say the issuance of short-term bonds will greatly improve the creditworthiness of Brilliance Auto and optimize its liability structure.
Brilliance Auto Group currently owns three public companies: Brilliance China (1114.HK), Shenyang Jinbei Automotive (600609.SH), and Shenhua Holdings (600653.SH).
