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Chinese airlines moving to bond sales as cost of financing increases

15-Mar-2011 9:48 AM

China Eastern Airlines chairman Liu Shaoyong commented that China's tighter economic policies "have raised the cost of financing" (Bloomberg, 15-Mar-2011). In Feb-2011, China Eastern Air Holding Co sold CNY500 million (USD76.1 million) of 5.31% five-year bonds. China National Aviation Holding Co, parent of Air China, and Hainan Airlines Co, disclosed plans last week to offer a combined CNY15 billion (USD2.3 billion) of bonds this year. Yields on Chinese airline bonds are approaching their highest level in 14 months.