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To: djane who wrote (6402)	8/9/1999 8:09:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

*China Telecom To Issue US$6 Bln Bond for Mobile Network Expansion - Report (8/9/99) China Telecom is preparing a US$6 billion bond issuance in order to finance the purchase of three mobile communications networks, the August 4 Souhu Xinwen (Sohu News) reported. China?s leading telecom firm is weighing the possibility of raising the funds via a stock issuance or through borrowing, the news outlet said. A spokesperson for China?s leading telecom firm told Souhu Xinwen that the company does have "a financing need," but he said neither a financing vehicle nor figure have been decided upon yet. He denied that a US$6 billion bond was in the works, the news group said. China Telecom reportedly has RMB 20 billion (US$2.42 bln) on hand, but an even greater war chest is needed to finance the purchase of the three networks, according to Souhu Xinwen. Moreover, China Telecom's planned capital investment for network expansion is RMB 13.4 billion (US$1.62 bn) for 1999 and RMB 17.2 billion (US$2.08 bn) for 2000. Due to such existing financing commitments, China Telecom would not be able to shoulder the costs of the network purchases internally. Therefore, a bond offering or another form of borrowing is the most feasible ways to raise the financing. China?s financial markets in recent days have been a buzz with rumors that China Telecom will distribute shares to raise funds, the news organization reported. China Telecom reportedly has even consulted several major investment banks to study how such a massive bond would be organized. Credit Suisse First Boston, Goldman Sachs, Hong Kong Shanghai Banking Corp., Merrill Lynch, J. P. Morgan, Morgan Stanley Dean Witter are involved in the organizational planning, Souhu Xinwen reported. ¸ ChinaOnline 1999.