(Yicai Global) Dec. 28 -- China's largest private logistics service provider S.F. Holding Co. [SHE: 002352] will issue bonds worth USD500 million abroad for loan-substitution from overseas banks, replenishment of working capital, investment and other expenditures, the company said in a statement.

It plans to publicly issue bonds not exceeding USD500 million with SF Holding Investment Limited, an overseas wholly-owned subsidiary of the company incorporated in the British Virgin Islands, as the issuer. The proposed issuance of bonds would not exceed a period of 10 years, and the specific issuance period shall be subject to the funding requirements and market conditions at the time of issuance, it said.

The issuance of bonds will abide by the Regulation S of the Securities Act and be issued to qualified institutional investors outside the US. After the completion of issuance, it will be listed and circulated on the Hong Kong Stock Exchange.

With the further development of the internet economy, China's domestic logistic industry has witnessed an era of rapid growth, but also competition. In the face of fierce competition, operators need to increase their investment in infrastructure construction and human resources, which forces them to seek new sources of funding.