Wuhan Iron and Steel to issue medium-term note

Updated: 2012-08-22 15:02

By Du Juan (chinadaily.com.cn)

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Wuhan Iron and Steel (Group) Corp said that it will issue a 6 billion yuan ($952 million) three-year medium-term note on Aug 24.

The money will be used for the company’s operational costs, according to a statement on its website published on Aug 21.

The company also issued a 2 billion yuan term note in June, and a 3 billion yuan term note in July.

The money raised this time will be used to buy raw material, including iron ore and coal.

Although the company has overseas mining rights, it still has big demand for raw material every year, with around 80 percent of the iron ore and coal for steel production depending on outsourcing, according to a report in the National Business Daily on Aug 22.

The company plans to buy approximately 22 million tons of iron ore this year and 15 million tons of coal, which will require about 424 million yuan.