On May 31, Sinosteel issued 1.2 billion 2006 one-year financing security in bank security market. On June 1, all the fund has been sent to account. The issue completed successfully.
The short-term financing security is issued on discount at 96.86yuan/100yuan with the rate of 3.2418%, which is comparatively beneficial in the period. The subscription is 3.8 times more than the issued amount, which represents the good credit of Sinosteel to the bank market.
Short-term financing security is issued and transacted in bank security bank in accordance with the condition and procedure stipulated in Short-Term Financing Security Management Item issued by the People’s Bank of China. It is the security with value that should be returned with the capital and interest within the due time. Sinosteel’s successful issue of the 1.2 billion short-term security is good for supplement circulating capital to the corporation’s operation and development, optimizing financing structure, reducing financing cost and publicizing the corporation’s image. It is also a breakthrough of Sinosteel to develop financing method.