Giti Tire to Sell Bonds
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
Citing market sources, the South China Morning Post reported that Giti has hired Lehman Brothers and Credit Suisse to arrange the sale of the five-year bonds. As part of the deal the company will have the right to purchase the bonds back from investors after a three-year period.
Giti Tire is conducting a campaign to promote and market the bonds, commencing in Hong Kong before moving on to Singapore and London. The company enjoyed tyre sales of more than US$1 billion during the last year, with shares increasing in value by four per cent.