(January 30, 2006) Two recently issued bond tranches of China’s Yangtze Three Gorges Development Co. will start trading on the mainland bourses April 19

Shanghai: The two recently issued bond tranches of China’s Yangtze Three Gorges Development Co. will start trading on the mainland bourses April 19, the company said over the weekend. The two corporate yuan-denominated bond tranches were issued in November 2001 to domestic investors. The 15-year fixed-rate bond, with issue size of three billion yuan ($1=CNY8.28) and interest rate of 5.21%, will be traded on the Shanghai Stock Exchange. The CNY2 billion, 10-year floating rate bond will be traded on the Shenzhen Stock Exchange, the company said in a statement. The floating rate bond carries an annual interest of 175 basis points above the one-year bank deposit rate which currently stands at 1.98%. Due to China’s strict foreign exchange controls, the bonds can only be traded by domestic investors. The Three Gorges Development, builder of the controversial Three Gorges Dam, has been selling bonds to local investors since 1997, after it became clear that international financing would be difficult to secure. The total cost of the massive dam project is estimated at CNY203.9 billion.

Dow Jones International News, January 30, 2006