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Baosteel to issue RMB bond in Hong Kong

2011-11-22 12:43    Ecns.cn     Web Editor: Xu Rui

Shanghai (CNS) -- Baosteel Group Corporation (Baosteel), placed in the highest tier of global steel issuers as rated by Fitch, Moody, and Standard & Poor's, is set to issue RMB bonds in Hong Kong. The rating was announced on November 21.

The three agencies arrived at largely the same conclusion for Baosteel's bond rating – Moody gave it an A3, Standard & Poor an A, and Fitch an A-. All of them view the producer as stable prospect for future development.

The Chinese State Council approved the bond issue on October 10, 2011, the first program in Hong Kong carried out by a mainland company.

Baosteel's high rating is attributed to its leading role in the market, and the booming Chinese steel economy, noted Moody.

Market analysts speculate that the positive rating will pave the road for Baosteel to ace further funding trials in the international capital market and expand its global business.

A series of road shows will be conducted as planned. The fund will be invested in founding overseas sub-companies, claimed Baosteel.