Angang Steel proposes three issues totaling up to RMB 10 billion

By William Gullotti

Buffalo, N.Y., April 1 – China’s Angang Steel Co. Ltd. is considering a board proposal to issue up to RMB 10 billion of financial instruments in three types for the purpose of reducing financing costs, according to a company announcement on Monday.

Specifically, the proposed issuance includes not more than RMB 3 billion of ultra-short-term financing bills, not more than RMB 3 billion of short-term financing bills and not more than RMB 4 billion of medium-term notes.

The overall issuance requires shareholder approval at the company’s upcoming general meeting. Upon receiving shareholder approval, the resolution will be valid for 24 months.

The ultra-short-term financing bills will be issued in China’s domestic inter-bank bond market, targeting institutional investors, in one or more tranches with interest rates determined via bookbuilding.

Similarly, the short-term financing bills will be issued in the same manner, with tenors not to exceed one year.

The medium-term notes will be issued in the same manner as the financing bills, except with tenors not to exceed seven years and comprised of single-type notes or hybrid products with multiple terms.

Proceeds from the proposed offerings are intended for replenishing working capital and for repaying corporate debts.

Angang is a steel maker based in Anshan, China. Its parent company is Anshan Iron and Steel Group.

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