China Nine Dragons issues bond price guidance-source

HONG KONG, April 21 (Reuters) - Nine Dragons Paper (Holdings) Ltd (2689.HK: Quote, Profile, Research, Stock Buzz), China's largest paper board producer, plans to sell 5 year, dollar-denominated bonds at 500 basis points (bps) over U.S. Treasuries, a source close to the deal said on Monday.

The offering, which aims to raise $300 million, will yield around 8 percent.

The bond offering, handled by Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), could price as early as Tuesday, the source said. (Reporting by Umesh Desai; Editing by Edmund Klamann)