My reading of this announcement is that Baosteel may be now raising the remaining portion of the 6.5 billion yuan authorized by the Chinese government. That would put the total raised in 3 months close to $1B.
Nice to have powerful friends with nice credit ratings. A further injection of funds into Noront could be coming.
Global Credit Research - 20 Feb 2012
Hong Kong, February 20, 2012 -- Moody's Investors Service has assigned an A3 senior unsecured debt rating to the proposed offshore RMB bonds issuance by Baosteel Group Corporation ("Baosteel"). Moody's has also affirmed Baosteel's A3 issuer rating.
The terms and conditions of the proposed bond issuance are similar to those of Baosteel's RMB3.6 billion bond issuance on 1 December 2011. The proceeds from the issuance will be used by Baosteel as a capital injection into its wholly-owned subsidiary, Baosteel Resources (International) Limited for general corporate purposes and expansions.
(December 2011 News Release)
The State-owned steel maker Baosteel Group Corporation, the first onshore non-financial mainland company to issue offshore yuan-denominated debts last November, has sold 3.6 billion yuan ($571.6 million) multi-tranche dim sum bonds out of a 6.5 billion yuan issuance quota approved by the National Development and Reform Commission. Baosteel will use the proceeds of the debt sale to boost working capital at its Hong Kong unit designated to develop overseas mining resources and international trade, said Zhou Zhuping, the company's vice-president.
