China's top economic planner agreed on Wednesday that the national railway operator can issue 300 billion yuan ($45 billion) worth of bonds for railway construction and debt restructuring.
China Railway Corp got permission to issue in total 300 billion yuan, of which 200 billion will go for railway projects and equipment purchases, according to a statement from the National Development and Reform Commission (NDRC), the top economic planner. The remainder is for debt restructuring.
There will be 28 underwriters, including the major banks in China, such as the Bank of China and China Construction Bank.
A joint venture of Morgan Stanley, along with some securities brokerage firms, will also be involved in the issue, the announcement noted.
The company has been burdened by rising debt, with total debt reportedly reaching 4 trillion yuan as of the first three months of 2016.
The company's debt ratio as of the end of March surpassed 60 percent.
