Investors Dump Bohai Bonds on 192 Billion Yuan Debt Report
- Bohai Steel's bonds slumped most since issuance in 2014
- Steel `industry is facing serious overcapacity problems': S&P
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Investors are dumping Bohai Steel Group Co.’s bonds after a local news agency reported the state-owned company is struggling with 192 billion yuan ($29.6 billion) in debt.
The steelmaker’s 1.5 billion yuan 2017 Dim Sum notes have dropped 22 yuan this week to 70 yuan as of Tuesday in the offshore market, the biggest weekly fall since the notes were sold in 2014, according to data compiled by Bloomberg. The northern Chinese city of Tianjin, where Bohai Steel is based, plans to set up a committee of creditors to help the firm “get out of troubles,” according to a Caixin report on March 18. Two calls to the company’s main line went unanswered Wednesday.