Event: on April 18, 2013, the company, through Deutsche Bank and Morgan Stanley, successfully issued a senior note with a principal amount of US $350 million due in 2018 at an interest rate of 5.25% per annum and an estimated net income of US $344 million. It will be used to finance its expenses, to repay existing debts, and for other general corporate purposes.

Content:

Maturity date: April 25, 2018

The selling price of the bill: 100% of the principal amount of the bill.

Note interest bearing method: the note will bear interest at the rate of 5.25% per annum and will be paid at the end of each semiannual period on April 25 and October 25 each year starting from October 25, 2013.

Bill rating: Moody's Corporation Investor Service Company is rated as "Ba1" and Standard & Poor's rating Service Company is rated as "BB+".

Comments:

1. Reasonable annual interest rate: based on the nature of CNPC, the annual interest rate of 5.25% is reasonable based on the nature of CNPC private enterprises, by comparing the $300000000 of 4.375% preferred notes issued by Shenzhen HK (highway infrastructure, state-owned enterprises) in April 2012 due in 2017 (Moody's Corporation and Standard Poole are awarded to "Baa3" and "BBB" respectively).

two。 Corporate bonds can effectively speed up the progress of corporate projects, and in the short term, it also avoids the dilution risk of equity financing, which is good for the development of the company.

3. The company's valuation advantage is obvious and the margin of safety is high. At present, the company's PE valuation is between 13 and 14 times, which is a big discount compared with the industry average of 20 times PE. It is recommended to pay active attention to it.