Central Huijin to issue bonds to raise $17.7bln

To spend 80% of proceeds of bond market entry to invest in Chinese banks' financing initiatives.

China Central Huijin Investment Ltd, the domestic investment arm of the nation's sovereign wealth fund, China Investment Corp, hopes to raise around US$17.7 billion through bond issue in two years, sources reported.

The fundraising plan, if successful, will be Central Huijin's first time to enter the bond market.

According to the report, Central Huijin will use the proceeds from the bond issue to invest in major Chinese lenders' financing plans. Currently, Central Huijin holds 35.4%, 67.5% and 57% of Industrial and Commercial Bank of China, Bank of China and China Construction Bank Corp, respectively.

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