Shanghai (ZXZC)- SAIC Motor is ready to apply for public issuance of RMB20 billion worth of bonds by means of shelf offering and the plan has been approved by the company's board of directors and supervisory board, the China's biggest auto group announced on July 19.

The money raised from the shelf offering would be used to replenish the group's working capital, promote R&D innovation and develop concrete projects after deducting the issuance expense, according to the announcement.

(Photo source: SAIC Motor)

In the future, SAIC Motor will strive to make breakthroughs in core technologies of new energy and intelligent connectivity at the R&D level. In regard to manufacturing progress, the group will accelerate the development of digital and bespoke production methods, said the automaker.

Besides, new breakthroughs are expected to be made in mobility service platform, smart logistics and financial service. Regarding the marketing channel, SAIC Motor will stick to the parallel expansion of domestic and overseas markets in a bid to improve its brand’s competitiveness and global influence.

This is not the unique case that SAIC Motor raised capital for the sake of “R&D innovation”. In January 2017, SAIC Motor raised RMB15 billion through a non-public issuance of stocks. The company stated the capital raised was primarily utilized on R&D innovation for such programs as energy-saving and new NEV products, forward-looking technologies of fuel cell vehicles and ICVs.

SAIC Motor dropped three places to 39th on the 2019 Fortune Global 500 after its last year's revenues reached US$136,392.5 million, the 6th year in a row entering the Top 100.