China Steel to Issue NT$20 Bln in Bonds Next Year

Dec. 29, 2011 (China Knowledge) - Taiwan-listed China Steel Co, the country's largest steel maker by revenue, plans to issue not more than NT$20 billion or US$660 million worth of corporate bonds in 2012 to replenish working capital.

In a statement, the steel company said on Wednesday that it has received approval from its board of directors for the unsecured bond issuance with a maturity of between three and seven years.
 
In September, China Steel issued NT$9.3 billion of five-year corporate bonds with a coupon rate of 1.36% and NT$10.4 billion of seven-year corporate bonds with a coupon rate of 1.57%.

The Taiwanese steel maker has announced plans to start full construction on its third electrical steel production line next July with an investment exceeding NT$14 billion.

The new facility is expected to go into operation in 2013 with an annual output capacity of 150,000 tons to 200,000 tons, said Executive Vice President David Du.

China Steel's next electrical steel production line in India is also in the process of construction, sources reported.