China's CNPC says to issue 20bn yuan in bonds

SHANGHAI: China National Petroleum Corp (CNPC) said on Monday it would issue 20 billion yuan ($3.2 billion) worth of bonds to fund a major gas pipeline and boost working capital.

The bonds are divided equally into 7-year and 15-year bonds, and will be sold on Wednesday and Thursday, CNPC said in a statement published in the Shanghai Securities News.

Underwriters included Galaxy Securities, Hongyuan Securities and China International Capital Corp, it said.

Sources told Reuters earlier this month that CNPC planned to sell 60 billion yuan worth of bonds in three batches over the next few months to fund industrial projects and boost working capital.

CNPC, the country's largest oil and gas producer has said it produced 107.54 million tonnes of crude oil in 2011, up 2.13 million tonnes from the year before.

Copyright Reuters, 2012