Jun. 15, 2012 (China Knowledge) – Jiangsu
Shagang Group Co, China's largest privately-owned steelmaker, said it plans to issue RMB 2 billion worth of medium-term notes with a maturity of five years in the interbank market on Jun 20.
The notes will be issued at the face value, and the coupon rate will be determined in the process of book-building. Both value date and payment due date is Jun 25 and the to-be-issued notes are tradable on Jun 26.
RMB 500 million of the proceeds will be used to replenish working capital while the remaining RMB 1.5 billion will be used to repay bank loans, said the issuer.
China Chengxin International Credit Rating Co Ltd has rated the issuer and the bills AA+ and AA+, respectively.
Agricultural Bank of China Ltd or ABC<601288
> has been assigned as lead underwriter and bookrunner. Bank of China <601988
> will be the joint lead underwriter for the offering.
This is the issuer's first medium-term notes this year and it plans to issue another RMB 2 billion worth of notes with a maturity of five years in the fourth quarter of 2012.