BEIJING, Nov. 22, 2016 /PRNewswire/ -- China New Borun Corporation (NYSE: BORN) ("Borun" or the "Company"), a leading producer and distributor of corn-based edible alcohol in China, announced today that Shandong Borun Industrial Co., Ltd, one of the Company's wholly owned subsidiaries, had successfully completed a private placement of five-year fixed-rate bonds ("The Bonds") with a principle amount of RMB300 million.
Pursuant to a registered plan submitted with the Shanghai Stock Exchange, The Bonds were issued on November 2, 2016 at face value with a simple interest rate of 6.5% per annum. Guaranteed by China United SME Guarantee Corporation and reflecting the Company's solid financial position and consistently positive annual net income, The Bonds received an investment-grade rating of "AA-" by one of China's notable, independent rating agencies.
Under the terms of The Bonds, the Company will make annual interest payments of RMB19.5 million commencing November 2, 2017. The Company will also pay three annual installments for the principal portion of The Bonds commencing November 2, 2019. The Company expects proceeds from issuance of The Bonds will be used for working capital and capital expenditure purposes.
About China New Borun Corporation
China New Borun Corporation (NYSE: BORN) is a leading producer and distributor of corn-based edible alcohol sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage in China. The Company also produces DDGS Feed, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production, and chlorinated polyethylene (CPE) that is widely used in chemical industries. China New Borun is based in Shouguang, Shandong Province. Additional information about the company can be found at http://www.chinanewborun.com and in documents filed with the U.S. Securities and Exchange Commission, which are available on the SEC's website at http://www.sec.gov.
Asia Bridge Capital Limited
Phone: +86-10-8556-9033 (China) / +1-888-870-0798 (U.S.)
SOURCE China New Borun Corporation