Dec. 16, 2011 (China Knowledge) - Baosteel Group, the state-owned parent company of Baoshan Iron and Steel, has said a subsidiary Xinjiang Ba Yi Iron & Steel Co Ltd plans to issue RMB 1 billion worth of 366-day unsecured bills on the interbank market from December 20 to December 21.

Coupon rate will be determined in the process of book-building. Both value date and payment due date will be December 22, and the to-be-issued bills are tradable on December 23.

Proceeds from the issue will be used to repay bank loans and replenish working capital, said the issuer.

China Chengxin International Credit Rating Co Ltd has rated the issuer and bills AA and A-1, respectively.

Industrial and Commercial Bank of China has been assigned as the lead underwriter and bookrunner.

This will be the issuer's first short-term bill this year, sources reported.