China Knowledge reported that Lingyuan Iron & Steel Co Ltd which is principally engaged in the iron and steel industry will issue CNY 1.48 billion worth of corporate bonds with a maturity of eight years on the interbank market in the period from August 1 to 5.

The Shanghai listed firm said in a statement that it has received approval from the China Securities Regulatory Commission to issue the corporate bonds. Coupon rate will be in the range of 5.80% to 6.60%.

Lingyuan Iron & Steel SAID CNY 726 million of the proceeds will be used to repay bank loans, the remainder will be used to replenish working capital.

China Cheng Xin International Credit Rating Co has rated the issuer and bonds AA and AA+ respectively. China Merchants Securities, one of China top ten brokerages and a unit of China Merchants Bank has been assigned as the lead underwriter.

(Sourced from China Knowledge)