Chinatex Corporation Issued RMB 1 Billion Medium-term Note

On may 27th, 2010, China tex Corporation successfully issued RMB 1 billion medium-term note as the 1^st installment 2010. The notes were registered on Bond Market Traders Association of Bank of China. The raised money was received by China tex on May 31, which marks the complete success of the issuance. This is the first time that China tex Corporation issues medium-term note, and also the first time to finance directly at domestic bonds market.

　　The notes issued are 3-year notes with a coupon fixed rate of 3.87%, which is 1.53% less than the benchmark rate of bank loans. The raised funds will be used on medium and long term working capital and capital expenditure, which is of great significance in improving the debt structure, strengthening financing independence and increasing direct financing facilities of China tex.