Baosteel Co., Ltd. Completed Issuance of 10 Billion Yuan Convertible Bonds with Warrants

On June 25, Baoshan Iron & Steel Co., Ltd. announced that the issuance of 10 billion yuan convertible bonds with warrants approved by China Securities Regulatory Commission had been completed on June 20 with a coupon rate of 0.80%. Despite a weak stock trend, the bonds are still enthusiastically subscribed by the capital market, with over one hundred subscription times and less than 1% bond drawn ratio.

The original shareholders enjoy the preemptive right for the convertible bonds with warrants based on their tradable shares not subject to selling restrictions, then after their subscription the balance of the bonds is issued in the combined form of off-line inquired allotment to institutional investors and on-line fund purchase.

The final subscribers who buy a lot of bonds worth 1,000 yuan would also be given 160 warrants which would allow them to buy Baosteel's local-currency A shares at 12.5 yuan at a ratio of two warrants for one share, the warrants would be able to be exercised two years after their listing.

The bonds were sold out at the day of issuance, among which the original shareholders enjoying the preemptive right for the convertible bonds with warrants based on their tradable shares not subject to selling restrictions subscribed 2.88204 billion yuan, accounting for 28.82% of the total amount issued; on-line general public investors finally got the quote of 583.

48 million yuan, accounting for 5.83% of the total amount issued, and the on-line bond drawn ratio is 0.61040733 ; the off-line institutional investors got the quote of 6.534475 billion yuan, accounting for 65.35% of the total amount issued, and the allotment ratio is 0.61040823 .