Sinopec to Raise Funds for Refinery Upgrades

China Petroleum & Chemical Corp (Sinopec) is considering selling about 43bn yuan ($6.3bn) of bonds to fund the upgrade of refineries and petrochemical plants.

Sinopec senior vice-president Zhang Jianhua told Bloomberg the company received shareholder approval to sell about 23bn yuan of convertible bonds.

The firm will also issue up to 20bn yuan of bonds following approval from China Securities Regulatory Commission.

CFO Wang Xinhua said the company will ensure that its needs for future investment, including overseas acquisitions, will be met through increased internal capital and external financing.

Sinopec plans to build a 60bn yuan refinery in Guangdong Province in a partnership with Kuwait Petroleum Corp, feasibility studies for which have received initial state approval.

The plant, expected to go onstream in 2013, will overtake ExxonMobil’s $5bn Fujian project as China’s biggest refining venture with an overseas partner, according to Bloomberg.