China State Firm Sells Bonds to Help Fund LGFV in Rare Move
- Decision points to liquidity strains in Guizhou province
- Bonds are rated AAA by local Chinese credit rating agency
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A state-owned firm in China’s Guizhou province is selling bonds to help repay debt issued by a local government financing vehicle, a rare move that highlights the region’s liquidity strains.
Guizhou Hongyingda Construction Project Management Co., a wholly-owned subsidiary of the finance bureau of Xixiu district in Anshun city, issued a 1.8 billion yuan ($250 million) five-year non-public bond Friday with a coupon of 4.8%, according to a filing on Shanghai Stock Exchange’s private disclosure platform seen by Bloomberg.