China Telecom, the country’s biggest fixed line operator, plans to issue a total of 30 billion yuan in bonds to fund diversified business development in the face of a saturated core business. The company will apply to regulators to initially raise 10 billion yuan in six to 12 months. The new debt will lower the overall financial costs and bring greater financing flexibility for the company to exercise various business models. The first tranche of bonds is expected to be offered at an interest rate of 3.5-4 per cent.
