Baosteel seals $500m bond exchangeable into CCB

The Chinese steel heavyweight is potentially offloading its equity stake in China Construction Bank through an exchangeable bond structure in Hong Kong.

Baosteel seals $500m bond exchangeable into CCB

Baosteel Group, the world’s fourth-largest steel producer by production volume, completed its second equity-linked issuance in 12 months on Tuesday by printing a $500 million zero-coupon bond exchangeable into the Hong Kong shares of China Construction Bank.

Similar to other China-incorporated companies, Baosteel issued the bond through its offshore subsidiary Baosteel Hong Kong Investment and provided a keepwell and liquidity support deed for credit enhancement purposes.

Pricing was fairly...

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