Geosteel Takes Sustainable Steps with $15 Million Bond Issue

Geosteel, a steel producing company with an annual production capacity of 300,000 tons, has announced a bond issue worth $15 million.

The raised resources will be utilized to refinance existing loan obligations, and for the financing of a capital project in direct mining, which aims to bring changes to the steel production process by bypassing the heating furnace and saving gas consumption up to 75%. The issuer plans to complete this project by December 2024.

Geosteel has plans to fill bonds up to $30 million, with around $20 million being utilized to refinance existing liabilities. The issued bonds, with a minimum of two issues, represent a security that aligns with the company's sustainability goals.

Geosteel has set its sights on financing its capital project of direct mining with $7.5 million from the net income received from the bond issue. This will help the company achieve its objective of reducing the environmental impact of steel production.

The funds raised will also be utilized to repair the machinery at the factory, with a part of the collected money being spent this year. In case of additional financial requirements, the company plans to secure $5-10 million through credit lines from banks.

Geosteel's bond issue demonstrates its commitment to sustainable practices, and the utilization of the funds for environmental projects will help reduce the carbon footprint of the steel production process. The company's efforts to minimize its impact on the environment while maintaining its profitability position it as a leader in the steel industry.