Zhengzhou Yutong Group Co, Ltd, parent of Zhengzhou Yutong Bus Co., Ltd<600066>, Friday announced it would issue RMB 300 million financing bonds with a maturity of 365 days on the interbank market on Dec. 15.

This batch of bonds will be issued at the face value and the yield will be determined during the process of book building, according to the company's statement posted on the official Chinabond.com website.

The value date and payment due day will both start from Dec. 16. The bonds will become tradable on Dec. 17.

Proceeds from the issuance will be used to supplement working capital, optimize its financing structure and lower financing costs, according to the company.

China Cheng Xin International Credit Rating Co has rated the issuer and the bonds AA- and A-1 respectively.

China Minsheng Banking Corp Ltd<600016> has been assigned as major underwriter for the sale.

Headquartered in Zhengzhou, Henan province, Yutong Group is a large-scale enterprise group with bus making as the core business, engineering machinery and real estate as the strategic business and at the same time giving attention to other investment portfolios.

Its core enterprise Zhengzhou Yutong Bus Co Ltd, located in Zhengzhou Industrial Park, has developed into the largest and most advanced bus manufacturing base in Asia.