Sinopec raises pipeline funds

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SHANGHAI, China (Reuters) -- Sinopec Corp., China's number two oil and gas producer, will issue 3.5 billion yuan ($423 million) in 10-year domestic bonds from Tuesday to fund pipelines.

The bonds carry an annual coupon of 4.61 percent, Sinopec said in a statement in the Shanghai Securities News.

Proceeds would fund the construction of oil product pipelines to deliver crude oil to Shanghai and the neighbouring cities of Ningbo and Nanjing, and also for refined oil product pipelines in southwestern China, the company said.

Beijing granted approval in January to the bond issue, which is available only to Chinese citizens and institutions.

Sinopec's Shanghai-listed yuan-denominated A shares, open to Chinese and select overseas investors, closed at 4.82 yuan on Monday, down 3.2 percent and in line with overall market weakness.

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