Sichuan Province-based Chinese steelmaker Panzhihua Iron and Steel Group (Pangang Group) has announced that it will issue short-term bonds worth RMB 3 billion ($482 million) in December. The period of issuance of the short-term bonds will be one year, and Bank of China Co., Ltd and China Everbright Bank Co. Ltd will be the joint lead underwriters.
Pangang Group stated that half of the raised funds, i.e., RMB 1.5 billion ($241 million), will be used to supplement its working capital. In particular, RMB 1 billion ($161 million) will be used to purchase raw materials, RMB 200 million ($32 million) will be used for paying electricity charges, RMB 100 million ($16 million) for paying for freight fees, and the remaining RMB 200 million will be used for paying for wages and taxes. Meanwhile, the other RMB 1.5 billion will be for the purpose of repaying debts.