CIFI holdings says to raise no more than 1.2 billion yuan 3-year note with state guarantee

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HONG KONG : Shanghai-based developer CIFI holdings said its China unit will start fundraising next week for a three-year note with a principal amount not exceeding 1.2 billion yuan ($172 million).

The issuance, which is the second tranche following a 1 billion yuan debt offering in March, is fully guaranteed by China Bond Insurance Co., Ltd, according to a company filing with the Hong Kong Stock Exchange on Sunday.

Beijing has in recent months stepped up support to boost market sentiment amid a sector-wide cash crunch, offering state endorsement to the launch of funding vehicles.

CIFI, which will commence around Sept. 21 with a fixed coupon rate to be determined based on book-building, is among the first to issue a second tranche of a state fully-guaranteed note.

($1 = 6.9799 Chinese yuan renminbi)

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