China Huijin gets nod for $12 bln bond issue-paper

BEIJING, April 21 (Reuters) - Central Huijin, the domestic arm of China's sovereign wealth fund, has received cabinet approval for an 80 billion yuan ($11.7 billion) bond issue, state media reported on Wednesday.

The proceeds of the sale, which has been expected since late last year, will be injected in the Export-Import Bank of China (China Eximbank), China Export and Credit Insurance Corp (Sinosure) and other state-run lenders, the China Daily said.

The amount of capital each will receive has yet to be decided, it added. The funds will help China Eximbank and Sinosure wipe bad loans off of their balance sheets.

The bonds will be sold in China's interbank market.

The issue will only go about a fifth of the way to meeting Huijin's application for a $50 billion cash injection, reported last month by state media.

Huijin is looking to boost its capital so that it can maintain its controlling stake in major state lenders as they raise more funds after their balance sheets were stretched by a lending boom last year.

($1=6.825 Yuan)

(Reporting by Simon Rabinovitch; Editing by Jacqueline Wong)

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