China Baowu raises $1.4 bln via bond, mostly for Simandou iron ore project

China Hongqiao

30/01/2024 12:40

BEIJING, Jan 30 (Reuters) - The world's largest
steelmaker China Baowu Steel Group has raised 10 billion yuan
($1.4 billion) from a bond issue, in part for the giant Simandou
iron ore project in Guinea, it said on Monday.  
    The capital, raised by issuing three-year fixed rate bonds
with an annual coupon rate of 2.45%, will be used for operating
expenditure, including debt repayments, working capital and
project construction, the company said in a document filed to
the Shanghai Stock Exchange last week. 
    At least 70% of the capital raised will be used for the
northern blocks of the Simandou project, according to the
document. 
    The Simandou project in southeastern Guinea in West Africa
is set to be the world's largest and highest grade new iron ore
mine.
    The two mining blocks in the northern region are being
developed by Winning Consortium Simandou (WCS), made up of
Singapore-based Winning International Group, Weiqiao Aluminium -
part of the China Hongqiao Group  1378.HK  - and United Mining
Suppliers.
    The entire Simandou project will be completed and put into
operation in 2026, Baowu said in the document.
    ($1 = 7.1786 Chinese yuan)

 (Reporting by Amy Lv and Andrew Hayley
Editing by Mark Potter)
 ((Amy.Lv@thomsonreuters.com;))