Air China to raise CNY5bn in bond issue

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Air China intends to raise CNY5 billion ($804 million) in a bond offering, the airline says in a filing with the Shanghai Stock Exchange.

The airline says it plans to raise CNY5 billion by issuing 10-year bonds with a coupon rate in the range of 4.95-5.35%. The final rate will be determined later by the airline and its underwriter, CITIC Securities.

Further bond issues are expected soon, with the airline noting that it has permission to raise up to CNY10 billion through bond issues.

Air China recently told financiers that it intends to finance its aircraft deliveries in the first half of 2013 through bonds and internal cash resources.