Baosteel Issues Second Tranche of Medium Term Notes
07/14/2009 - Baosteel Co., Ltd. issues a second tranche of medium-term notes with a total amount of RMB 5 billion yuan.
Baosteel Co., Ltd. has issued the second tranche of medium-term notes with a total amount of RMB 5 billion yuan issued. Notes were issued at the price of RMB 100 yuan, a coupon rate of 2.66% and a maturity of 3 years.
Baosteel shareholders had granted approval earlier this year for the issuance of a total of not more than RMB 10 billion yuan of medium term notes (RMB 10 billion yuan included). Baosteel said the proceeds would be used primarily to adjust the company’s debt structure and expand direct financing.
Baosteel received approval in mid-May from National Association of Financial Market Institutional Investors to register RMB 10 billion yuan of medium-term notes. The approved amount is valid for 2 years, and can be issued in China in phases.
Baosteel issued the first tranche of medium-term notes on May 25 with a total amount of RMB 5 billion yuan.
Baosteel received approval in mid-May from National Association of Financial Market Institutional Investors to register RMB 10 billion yuan of medium-term notes. The approved amount is valid for 2 years, and can be issued in China in phases.
Baosteel issued the first tranche of medium-term notes on May 25 with a total amount of RMB 5 billion yuan.
With investor confidence in Baosteel bolstered by the company’s recent growth, the RMB 5 billion yuan medium-term notes were sold on June 30, the bidding day for the issuance of the second tranche of Baosteel’s medium term notes. By July 1, the amount issued had been completely credited to the account.
Industrial and Commercial Bank of China and China Construction Bank served as the lead underwriter and joint-lead manager for this tranche of medium term notes.
