CJ Cheiljedang Corp., South Korea’s leading food manufacturer, said Thursday that it has raised 1.1 billion yuan (US$ 170 million) by selling so-called dimsum bonds in Hong Kong.
The three-year dimsum bonds, or debts denominated in the yuan and issued in Hong Kong, carry an interest rate of 2.25 percent, CJ Cheiljedang said, adding that BNP Paribas served as the sole sale manager.
The proceeds from the debt sale will be used to invest in a plant in Shenyang, located in northeast China, said CJ Cheiljedang. The Shenyang factory will produce an additional 100,000 tons of lysine and 3,000 tons of nucleic acid, it said.
CJ Cheiljedang said it expects to have a 25 percent share of the world lysine market, outpacing other rival companies in Japan and China.
CJ Cheiljedang noted that it is the first South Korean company to issue dimsum bonds, which are gaining popularity in the global debt market on the yuan’s steady appreciation against the U.S. dollar. (PNA/Yonhap)