Baosteel Bonds Sell WellThe issue of the bonds of China's largest steel maker has attracted a growing number of investors since August 10.More than 300 million yuan (36 million U.S. dollars) of bonds were sold on the first day. Approved by the State Development Planning Commission, the Shanghai-based Baoshan Iron and Steel Corporation (Baosteel) will float two billion yuan (240 million U.S. dollars) in five-year corporate bonds until September 20. The annual interest rate is four percent, 1.75 percentage points higher than that of a one-year bank deposit. The Huabao Trust and Investment Co. Ltd., a branch of the steel giant, will sell most of the bonds, to which China Chengxin Securities Rating Co. Ltd. has given an AAA credit rating. Anyone may buy the bonds and may expect to trade on the Shanghai stock market after the company issues them. The bonds will guarantee funds the corporation needs to meet a goal of becoming the country's largest base for high-grade steel production, research and development. By 2010, Baosteel aims to be the country's biggest supplier of steel products for automobile, oil pipeline, ship-building, cold-rolled electrical engineering, high-end building and stainless steel products, which are in short supply on the domestic market. |
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