Hesteel to issue up to 10 bn yuan in innovation corporate bonds

Hesteel Co., Ltd. has received approval to issue corporate bonds to professional investors, with a total registered amount not exceeding 10 billion yuan.

The first tranche, "Hesteel Co., Ltd. 2025 Public Offering of Technology Innovation Perpetual Corporate Bonds (Tranche 1)," will have an issuance size not exceeding 1 billion yuan, with a nominal value of 100 yuan per bond. The bonds have a basic term of three years, with Hesteel retaining the option to extend the term by one period (not exceeding three years) at each re-pricing cycle or to fully redeem the bonds. The bonds are unsecured and will be issued at par value.

Hesteel’s offering is classified as a technology innovation corporate bond, meeting specific criteria including a recent asset-liability ratio below 80% (74.49% at the end of June 2025) and significant technology innovation attributes, such as over 30 invention patents. This issuance is intended to fund production expenditures, including repaying interest-bearing debts, supplementing working capital, and investing in projects that meet legal and regulatory requirements. The bonds have received an AAA credit rating from China Chengxin International Credit Rating Co., Ltd., with a stable outlook.