(Yicai Global) Oct. 11 -- ZTE plans to issue bonds in China worth USD1.4 billion after regulators approved the move two years after the telecom equipment maker's board approved the debt sale. It will be the company's first bond issue since 2015.

The National Association of Financial Market Institutional, a self-regulating body that supervises the over-the-counter market, accepted ZTE's registration of CNY2 billion (USD281.6 million) of medium-term and CNY8 billion of short-term notes for offer in tranches, the Shenzhen-based company said in a statement today.

To replenish working capital and optimize its debt structure, ZTE's board agreed on Oct. 27, 2017 to issue CNY3.5 billion of five-year and CNY8 billion of nine-month bills.

At the end of June, ZTE's cash balance stood at CNY14.3 billion, short-term borrowings were CNY34.6 billion and long-term loans amounted to CNY3.3 billion. First-half interest expenses tallied CNY820 million. Its outstanding perpetual bonds amount to CNY6 billion. ZTE will have the right to call them in next January.

ZTE swung back into the black in the first six months of the year, posting operating revenue of CNY44.6 billion, a 13 percent increase from a year earlier. Net profit more than doubled to CNY1.5 billion. The company expects nine-month net profit of between CNY3.8 billion and CNY4.6 billion.