Yunnan Province-based Chinese steelmaker Kunming Iron & Steel Group Co. Ltd. (KISC) has announced that it plans to issue short-term bonds worth RMB 1.5 billion ($239 million) on March 22. The period of issuance of the short-term bonds is one year, with Bank of China as the main consignee.
China Chengxin International Credit Ranking Co. has ranked Kunming Steel’s long-term credit rating as ‘AA+’ and the short-term bonds in question as ‘A-1’.
Accordingly, RMB 495 million ($79 million) of the raised funds will be used to supplement Kunming Steel’s working capital, while the remaining RMB 1.005 billion ($160 million) will be for the purpose of debt repayment.