China National Petroleum Corp or CNPC, the parent company of PetroChina Co Ltd<601857><0857>, has said it intends to issue RMB 20 billion worth of corporate bonds with a maturity of ten years on the interbank market from Apr. 12 to Apr. 14.

The company said in a statement that the bonds consist of a RMB 10 billion which investors have redemption option at the end of fifth year, and another RMB 10 billion with redemption option at the end of the seventh year.

The coupon rate for the first bonds will be between 3.96% and 4.96% while the second bonds will have a coupon rate between 4.11% and 5.11%.

Dagong Global Credit Rating Co Ltd has rated the issuer and notes AAA and AAA, respectively.

China Development Bank Securities has been hired as lead underwriter. China Galaxy Securities, CITIC Securities Co<600030>, Guotai Junan Securities Co and China International Capital Corporation Limited or CICC will be the joint lead underwriters.

The company said that RMB 16 billion of the proceeds will be invested in the second line of west-east gas project and the remaining RMB 4 billion will be used to replenish working capital.

This will be the issuer's fourth corporate bond this year.