Shougang dim sum

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.
<div style="text-align: left;">
Chinese workers labour in front of a furnace at one of Shougang's plants in Beijing (AFP)
</div>
<div style="text-align: left;"> Chinese workers labour in front of a furnace at one of Shougang's plants in Beijing (AFP) </div>

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 bonds for exposure to the onshore parent company, Shougang Corp, which is owned by the State-owned Assets Supervision and Administration Commission.

However, the bonds are not guaranteed by Shougang and, apart from...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222