Xinjiang-based Chinese steelmaker Bayi Iron and Steel Co. (Bayi Steel), a subsidiary of Chinese steel giant Baosteel Group, has announced that on May 14 it will issue short-term bonds worth RMB 1 billion ($161 million) in a third-phase bond issue for the current year. The period of issuance of the short-term bonds is 365 days, with Industrial and Commercial Bank of China (ICBC) as the main consignee.
China Chengxin International Credit Ranking Co. has rated Bayi Steel's credit ranking as 'AA' and the short-term bonds in question as 'A-1'.
Accordingly, 20 percent of the raised funds will be used to supplement Bayi Steel's seasonal working capital, while the remaining 80 percent will be used to repay certain debts.