Guangzhou Province-based Chinese pipe producer Panyu Chu Kong Steel Pipe Co. has announced that, for the purpose of increasing working capital, optimizing capital structure and reducing operating costs, it will issue short-term bonds worth RMB 300 million ($48 million). The period of issuance of the short-term bonds is one year, from November 12, 2012 to November 11, 2013.
In particular, RMB 100 million ($16 million) of the raised funds will be used to supplement the company's working capital, while the remaining RMB 200 million ($32 million) will be used to repay some loans and optimize the company's capital structure, as stated by Panyu Chu Kong Steel Pipe.