State Grid Corporation of China will start the tender of its 30 billion yuan corporate bond issue on February 4, reports China Securities Journal, citing a company filing.

Twenty billion yuan of the 30 billion yuan worth of corporate bonds have a maturity period of ten years. The remaining ten billion yuan worth of the bonds will mature in 15 years.

The ten-year bond will pay investors a fixed coupon rate of the SHIBOR plus a spread of between 2.32 percent to 2.82 percent.

The 15-year bond will pay investors a fixed coupon rate of the SHIBOR plus a spread of between 2.47 percent to 2.97 percent. 

The value date of the bonds is February 5.

According to the company filing, 17.8 billion yuan of the proceeds will be used on the construction of the ultra-high voltage (UHV) DC power transmission pilot project from Fulong, Sichuan province to Nanhui, Shanghai. Five billion yuan will be used to replenish working capital and 7.2 billion yuan will be used to repay bank loans.