Chongqing Iron & Steel to issue RMB 2 bln bonds

Chonqing Iron & Steel Co Ltd<601005><1053>, the largest steel marker in West China, announced that it had got the approval from its board of directors to issue no more than RMB 2 billion worth of convertible bonds, sources reported.

According to the company, maturity of the convertible bonds is six years.

The company expects to raise RMB 3 billion from the bond issue, of which RMB 1 billion will be used to fund the technological innovation of a production facility. The remaining part will be used to repay the bank loans and replenish the working capital of the company.

The Chongqing-based steel maker posted its net profit for the third quarter of this year has surged to RMB 312 million, up 117.4% compared with the same period of the previous year.