China's Baosteel to issue up to 3b yuan of bonds amid virus outbreak
[BEIJING] Baoshan Iron & Steel, China's top listed steel producer, said on Tuesday it would issue bonds worth up to 3 billion yuan (S$598.6 million), partly to boost working capital amid the coronavirus outbreak.
The bonds, with maturity of three years, will be the first tranche of the company's 20 billion yuan issuance plan from 2020 approved by the securities regulator in October.
The funds raised will also be used to repay debt, the company, also known as Baosteel, said in a filing to the Shanghai Stock Exchange.
Beijing has beefed up financial support to prop up businesses, allowing debt financing and debt issuance by companies heavily affected by a fast-spreading coronavirus.
The coronavirus outbreak, which has killed more than 2,900 in China and has spread across the globe, pushed steel products stockpiles in the country to a record high and threatened steelmakers' cash liquidity.
The most actively traded construction steel rebar contract on the Shanghai Futures Exchange had dropped more than 5 per cent since Jan 20.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
An official from China Baowu Steel Group, the parent company of Baosteel, said last month the latter's orders in March fell by around 5 per cent. He also expected the whole group's first-quarter profit to reduce by 2 billion yuan to 3 billion yuan hit by the epidemic.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns