Hangzhou Iron & Steel's controlling shareholder gets green light for exchangeable bonds

Hangzhou Iron and Steel Company Limited announced that its controlling shareholder, Hangzhou Iron and Steel Group Co., Ltd. (Hangang Group), has received a "no objection" letter from the Shanghai Stock Exchange for its proposed non-public issuance of exchangeable corporate bonds. This issuance, with an expected term of three years, aims to raise up to RMB 1 bn. The bonds will be exchangeable for the company's A-share stock, utilizing Hangang Group's existing holdings in Hangzhou Iron and Steel as the underlying asset.

Hangang Group currently holds 1,527,508,156 A-shares, representing approximately 45.23% of Hangzhou Iron and Steel's total issued share capital. The "no objection" letter grants Hangang Group a 12-month window to proceed with the issuance, subject to market conditions and internal financial arrangements.

This non-public issuance is concurrently undergoing approval procedures with relevant regulatory bodies. Both Hangzhou Iron and Steel and Hangang Group have committed to providing timely disclosure of all developments related to the bond issuance.