Energy firm announces China's first-ever preferred share sale
Published on Apr 25, 2014 10:33 AM
SHANGHAI (Reuters) - Guanghui Energy Co has become the first Chinese listed firm to announce a plan to issue preferred shares, in a surprise to market watchers who expected banks would take the lead in testing out the new form of capital recently approved by regulators.
The Xinjiang-based private gas and coal mining firm aims to raise 5 billion yuan (S$1.6 billion) in a private placement, pending regulatory approval, the company said in an exchange filing.
The issue would mark China's first-ever sale of preferred shares, a form of hybrid capital instrument that combines features of debt and equity.
As part of a slew of reforms planned for China's capital markets, the State Council, the country's cabinet, gave the green light for preferred share issuance for the first time last November.
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