Anchor investors give lifeline to Shougang dim sum bond

Rivals speculate that Shougang Corp's dim sum bonds were not widely distributed and suffered weak take-up from institutional investors.

Anchor investors give lifeline to Shougang dim sum bond
Chinese workers labour in front of a furnace at one of Shougang's plants in Beijing (AFP)

Chinese state-owned steel company Shougang Corp priced a Rmb1 billion $157 million two-year dim sum bond at 4.875% on Thursday.

The unrated bonds were issued through British Virgin Islands-incorporated Shougang Holdings Bonds. The guarantor is Shougang Holdings Hong Kong, a holding company with no significant assets aside from equity interests in various companies, which has paid dividends of roughly HK$45 million $5.7 million during the past year.

Investors bought the...

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