China Telecom intends to refinance 70 billion raise 3G network reserve fund

Yesterday, a reporter from the China Telecom within the group learned that the China Telecom has been approved by the central bank, in the year before the end of October, to raise up to 30 billion yuan of short-term financing bonds through the way; at the end of October to the 2006 general meeting of shareholders held the day before, the China Telecom can also similar bonds issued through a batch or batch form, most of the balance up to 40 billion yuan. Before and after the total, China Telecom this year, the amount of financing up to 70 billion yuan.

China Telecom announced in its 2005 General Meeting of shareholders, the China Telecom will be held in Hongkong in its annual general meeting on May 23rd, will formally consider the financing plan. After the approval of the general meeting of shareholders, China Telecom is about to start its huge financing plan. However, China Telecom did not disclose its purpose to raise huge sums of money.

The industry believes that the cut of the PHS investment, and the fixed network construction has been basically completed, the only China Telecom to raise money 70 billion reasons, is reserved for future 3G network to raise funds. Previously you can refer to, after China Unicom in 2002 to obtain a CDMA license, China Unicom, a total of three CDMA project cost more than 130 billion yuan.

According to sources, China Telecom has begun to explore the huge financing. The first batch of short-term financing bonds will be issued from yesterday, the amount of financing in advance of 20 billion yuan, the Hongkong listed China Telecom Co as the issuer. The bonds will be in the inter-bank bond market from April 12th.

Previously, the industry is widely expected, once the government issued 3G licenses, operators in the early construction of a nationwide coverage of the 3G network, the initial investment of more than 100 billion yuan. China Telecom 2005 earnings report, currently holds about 15 billion 400 million yuan in cash in the hands of China Telecom, there is a gap in the 3G construction funds.