China Mobile issues RMB bonds; Salomon Smith Barney upgrades per share earnings

China Mobile (0941) declared to issue 10-year-term RMB5 bln bonds which are expected to be completed in July and then be listed at the Shanghai Stock Exchange. The batch of bonds, carrying a coupon rate of less than 4%, will save interest expenses of RMB50 mln every year compared with the 5% syndicated loan rate. Salomon Smith Barney lifted the per share earnings forecast in 2001 and 2002 by 0.06% and 0.3% to HK$1.85 and HK$2.05.

The fund house maintained its rating at buying, and pointed out that the bonds posted no effect on per share discounted cash flow which remained at HK$55.1.

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