Photo: Patrick Chovanec
Two China-based companies, GCL Poly Energy Holdings and China Qinfa Group, have delayed U.S. dollar bond issues citing weak market demand, reports the Wall Street Journal. GCL-Poly, a company that makes polysilicon solar panels, was going to issue between between $250 and $300 million of bonds. It said its bond-issuance plans are still ongoing, but has yet to set a new time table.
China Qinfa Group, a thermal coal supplier, also halted plans to issue U.S. dollar bonds. They had not yet announced how much they would issue.
The WSJ also reports that three more unnamed Hong Kong companies have pushed back plans to issue a combined $1 billion of U.S. dollar bonds. It’s obvious that the declining investor appetite (in general) and the fears specific to Chinese companies (see: Sino-Forest) is having a direct impact on companies ability to raise money.
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