Bayi Steel, the Xinjiang-based subsidiary of Shanghai-based Chinese steel giant Baosteel Group, has announced that it plans to issue short-term bonds worth RMB 800 million ($127.4 million). The period of issuance of the bonds is one year, with Industrial and Commercial Bank of China (ICBC) as the main consignee.
Accordingly, 20 percent of the raised funds, i.e., RMB 160 million ($25.5 million), will be used to supplement Bayi Steel’s seasonal working capital, while the remaining 80 percent amounting to RMB 640 million ($101.9 million) will be used to repay certain debts and so reduce financial costs.