Tsingtao Brewery Co.'s planned issue of bonds has received approval from regulators in China, according to reports.

Local reports yesterday (17 March) said that Tsingtao's issue of up to CNY1.5bn (US$211.9m) worth of six-year bonds with warrants has been approved by the China Securities Regulatory Commission.

Proceeds from the bond sale will be used to fund the construction of five new breweries in China, as well as to increase its present malt production capacity.

The Hong Kong-listed Chinese brewer said in November that the bonds will be sold to institutional investors.

Last October, Tsingtao, which is 27%-owned by Anheuser-Busch, posted a 52% leap in net profit for the three months to the end of September. Net profit hit CNY328.6m, on the back of a climb in sales for the period to CNY4.28bn from CNY3.7bn in the corresponding period a year earlier.