China Development Bank, which funds the nation's largest public works projects, will market 10-year dollar-denominated bonds starting from tomorrow, an e-mail sent from the bank said.

The state-owned lender plans to sell a benchmark-sized bond, or at least US$500 million, said the e-mail, which was sent to investors by the sale's arrangers.

The Beijing-based bank hired BNP Paribas, Merrill Lynch & Co, Barclays Capital, Citigroup Inc, Goldman Sachs Group Inc, HSBC Holdings Plc, JPMorgan Chase & Co and UBS AG to manage the sale.

China Development may be able to borrow cheaply. The bank's rating was raised by one level to A- from BBB+ on September 15 by Standard & Poor's (S&P). The rating, the seventh-highest investment grade, is the same as China's government, which was raised in July. The rating reflects expectations of "strong government incentives" to support China Development, S&P said.

China Development, which lent money to the Three Gorges Dam and the Qinshan Nuclear Power Plant, will market the bonds to investors in Singapore and Hong Kong this week, the e-mail showed.

The lender will promote the sale to investors in Los Angeles, Frankfurt, Boston, London, New York and Paris between September 26 and September 28, the e-mail said.

The proceeds will be used to fund foreign-currency loans for infrastructure and industrial projects and to pay debt, according to an August 18 filing to the US Securities and Exchange Commission.

China Development raised US$1.5 billion selling foreign- currency bonds last year, accounting for 66 percent of its total foreign-currency borrowing.

The lender's debt is rated A2, the sixth-highest investment grade, by Moody's Investors Service.

China Development, founded in 1994, has financed power, railway, petrochemicals and telecommunications projects, according to its website.

(China Daily September 21, 2005)