November 7 -- Huayi Electric (600290.SH) plans to issue 700 million yuan worth of corporate bonds on November 9, reports p5w.net, citing a company filing.

The amount to be issued to the public will account for 100 million yuan, while 600 million yuan will be available for off-line subscription.

The bonds have a fixed interest rate, and will mature in five years.

At the end of the third year, the issuer will have the option of increasing the coupon rate, while investors have the option of selling the bonds back to the issuer.

The indicative range of the coupon rate is 6.8-7.8 percent, and the value date is November 9, 2011.

Of the total funds raised, 168 million yuan will be used to repay short-term bank loans that will soon be due, and the remaining will be used to replenish working capital.

Source:CapitalVue