CHINA Railway Corp, a spin-off from the former Ministry of Railways, yesterday floated the first batch of bonds to fund its railway construction and buy trains.

The company issued 20 billion yuan (US$3.2 billion) in five-year bonds through an auction, marking its first bond issuance since its set-up on March 14.

It will use the proceeds to finance its railway construction, purchase trains and shore up its capital base, according to a statement filed to the China Central Depository and Clearing Co, the country's bond clearing body.

The bonds will become tradable on Monday and mature on May 24, 2018, with the Industrial and Commercial Bank of China and the Bank of China serving as underwriters.