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Great Wall Motor to issue short term financing bonds

Auto News - Published on Fri, 16 Nov 2018

Image Source: Dryve
Gasgoo reported that Great Wall Motor announced on November 13 that it plans to issue no more than RMB5 billion worth of ultra-short-term financing bonds to optimize its debt structure and the funds raised will be used to supplement working capital and repaid interest-bearing debts.

The "ultra-short-term financing bonds" as mentioned here shall refer to the short-term financing bonds with a term of 270 days or less, which are issued by non-financial enterprises with a legal person status and a high credit rating in the inter-bank bond market. With more flexibility over the short-term financing bonds, the ultra-short-term financing bonds can help enterprises break the bottleneck of short-term working capital scarcity and improve the liquidity management level.

Affected by the stagnant automobile market climate and investment on new businesses, automakers have increasingly depended on cash flow. Such car makers as JAC Motors and Zotye Auto previously announced that they would use the idle funds raised to supplement routine working capital in order to alleviate the pressure of inventory and payment collection.

Source :

Posted By : Joykumar Irom on Fri, 16 Nov 2018
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