China petrochemical 23 billion yuan convertible bond application approved

December 29 Night, Sinopec (600028)　　SH/00386.HK) issued a notice, the company issued a a-share convertible bonds by the China Securities Regulatory Commission issued the Audit Committee approved. Sinopec announced earlier that in order to meet the growing demand for oil and gas in China, the company intends to issue no more than 23 billion convertible bonds to support the renovation of the refinery project and the construction of oil and gas pipeline facilities.　　The issuance of convertible bonds each face value of 100 yuan, the period of six years from the date of issue, the transfer period for the issue of the end of the first trading day after June to the expiry date of the convertible bond, the coupon rate of not more than 2.5%, the initial transfer price is not lower than the issuance of the 20th　　The company said the issuance of the convertible bonds will be used in Wuhan 800,000 tons/year ethylene project, the adaptability transformation of sour crude processing in Anqing branch and the oil quality upgrade project, the oil quality upgrade project of Shijiazhuang refinery and Petrochemical Company, the Yulin-Jinan gas pipeline project and Rizhao-Yizheng crude oil pipeline and supporting project. Qilu Securities Research Report Analysis, referring to the current market valuation level and the last year's issuance of convertible bond premium rate level, as well as the market on the day of the transfer of debt to the expectation, the initial conversion rate of Sinopec is expected to transfer shares of 12% to 25%. If the Chinese petrochemical transfer debt rate is appropriate, its price will exceed ICBC (601398. SH/01398.HK) Transfer debt.