the Largest steel producer in China, Baoshan Iron & Steel Co Ltd (Baosteel) said on Tuesday that it will issue bonds worth up to 3 billion yuan (430 million dollars), mainly to increase working capital in terms of the outbreak of coronavirus.
Bonds with a maturity of three years will be the first tranche of equity plan of the company in the amount of 20 billion yuan in 2020 approved by the national regulator for securities in October 2019.
funds raised will also be used to repay debt, it said in a statement on the Shanghai stock exchange.
Beijing has increased financial support of business, allowing debt financing and bond issues, the companies most impacted by fast-spreading coronavirus.
as a result of input of quarantine measures in China in the warehouses of suppliers of rolled steel accumulated a record amount of steel products, which threatens a new collapse in market prices after the lifting of restrictions on the carriage. Stock prices for the supply of rebar in three months last week, fell more than 5%.
