China's Bohai steel says has paid interest on bonds due 2017

15 Jun, 2016

HONG KONG: China's Bohai Steel Group said it had paid the coupon on its yuan-denominated bonds, which was due on Wednesday, and gave assurance that it had sufficient funds to pay the coupon on dollar bonds due for payment on June 17. The 6.4 percent coupon is on its 1.5 billion yuan bond .

China's steelmakers are in the eye of a storm as Beijing moves to slim down bloated industries, including steel and coal, to make the economy more efficient and address a supply glut that has hammered coal and steel prices. Earlier this year, the city government of Tianjin, which owns Bohai Steel, set up a creditor committee after signs it might struggle to fully repay 192 billion yuan ($29.64 billion) of debt, according to a report in financial magazine Caixin.

Bohai Steel Group Co Ltd, a steelmaker based in northeast China has a $100 million bond due 2018 whose coupon is due this Friday.

Copyright Reuters, 2016

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