Gemdale Industries, one of China's leading real estate firms, announced Wednesday that it plans to issue up to 1.2 billion yuan (158 million U.S. dollars) in corporate bonds.

This makes Gemdale the first publicly listed company to issue corporate bonds following the promulgation of procedures on the issuance of corporate bonds by the China Securities Regulatory Commission on Aug. 14.

Gemdale said the bonds were valued at less than 40 percent of its net assets of 3.08 billion yuan at the end of 2006. The capital raised would be used to repay bank loans, readjust debt structures, or to supplement working capital.

The outstanding term of the bonds would be at least five years, and no more than half of the bonds would be sold to the company's shareholders.

The CSRC procedures adopt an application and approval system, require no hypothecation, and the issuing price is set by market consultation, providing a low-cost financing tool for companies.

Issuers of corporate bonds are restricted to joint-stock companies either listed on the Shanghai and Shenzhen stock exchanges or on overseas markets.