China Railcom Gets Huge Loan

Home>>Business

Last updated at: (Beijing Time) Wednesday, June 26, 2002

China Railcom Gets Huge Loan

DISCUSSION

CHINESE

SEND TO FRIEND

China Railcom, an emerging fixed-line telecom carrier, has got strong financial support from the State Development Bank with a loan worth 10 billion yuan (1.2 billion US dollars), China Daily reported Wednesday.

This is the second loan under a cooperation agreement signed between the two parties last year, according to which the bank will provide loans totaling 20 billion yuan (2.4 billion US dollars) to support China Railcom's spending on basic network construction and technology innovation.

The first loan, which was worth 5 billion yuan (602 million US dollars), was extended to the company last year.

According to the agreement, the bank will also provide the telecom firm long-term foreign currency loans and help it issue corporate bonds in the domestic and overseas capital markets.

China Railcom is preparing to issue corporate bonds to domesticinvestors this year, China Daily quoted company sources.

Before the company could go public in the stock market, selling corporate bonds would be an ideal way to raise capital besides back loans, they were quoted as saying.

The State Development Bank, a "policy bank", carries out different duties with commercial banks. It contributes to the development of basic infrastructure and high-tech industries.

China Railcom, a new telecom carrier, is the only one to land such big loans from the policy bank, China Daily quoted company executives.

The loans from the State Development Bank sped up its transformation from a telecom network of the Ministry of Railways to a public network serving diverse users, Cai Qinghua, China Railcom chairman, was quoted as saying.

China Railcom network has covered 500 large and medium-sized cities. It made 4.31 billion yuan (519 million US dollars) last year.

Questions?Comments? Click here

AsiaInfo in IP Network Pact with China Railcom

Railcom Network Operates in 50 Cities

Railcom Ready for Rival

Uncle Sam's Policy to Cross-Straits Ties against Its Own Interests ( 36 Messages)

Englishman Hired as Chief Advisor of Yunnan Provincial Government ( 67 Messages)

Home-made Auto Sales Head for 3 Million in 2002 ( 22 Messages)

South Korea Beat Spain 5-3 in Shootout to Enter World Cup Semis ( 11 Messages)

Chinese Scientists to Head for Suspected ET Relics ( 8 Messages)