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Chalco to sell US$644m of bonds

(China Daily)
Updated: 2007-02-13 15:06

Aluminum Corp of China Ltd (Chalco), the nation's biggest maker of the metal, said it will raise 5 billion yuan (US$644 million) by selling bonds of more than one year maturity to fund expansion.

The company will seek shareholder approval for the sale at a meeting on February 27, it said in a statement yesterday to theHong Kongstock exchange.

Chalco said the bond issue will help ensure lower financing costs, with the proceeds to be used to fund major aluminum refining and smelting projects.

Last December Chalco offered an 8.17 billion yuan stock swap for remaining shares it does not own inShanghai-listed Lanzhou Aluminum Co andShandongAluminum Industry Co.

The company plans to list on the domestic stock market and is awaiting regulatory approval, said its Vice-President Lu Youqing.

In 2006 Chalco's parent, Aluminum Corp of China recorded 22.5 billion yuan in net profit, an increase of 18.1 billion yuan over its profit posted three years ago.

Its sales revenue was 105.5 billion yuan in 2006, an increase of 74.5 billion yuan compared with 2003.

The company's output of alumina, a raw material for making aluminum and abrasives, increased 59 percent over 2003, while finished aluminum showed 208 percent growth in the same period.

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