China Merchants Group has issued RMB10bn ($1.47bn) worth of bonds with a maturity of five years starting from January 18.
All the proceeds from the bond issuance will be used for the development of the ports under Liaoning Port Group, an integrated platform for three major ports in Liaoning province – Dalian Port, Yingkou Port and Jinzhou Port.
Liaoning Port Group was established in 2017 in response to the central government’s call to consolidate the port sector, following similar moves by others provinces including Zhejiang and Jiangsu.
In November, China Merchants Group signed a memorandum of agreement with Liaoning government, under which it will acquire a 49.9% equity interest of Liaoning Port Group through a capital replenishment.
China Merchants Group completed a restructuring of its port business in December, after it integrated all its port assets into Shenzhen Chiwan Wharf Holdings, which has been renamed China Merchants Port Group.