Baosteel Group, the parent of Baoshan Iron and Steel (600019), issued 2.9 billion yuan worth of offshore yuan-denominated bonds in Hong Kong, and will use the funds raised to pay for acquisitions and to develop mining resources, reports nbd.com, citing a company filing.

Proceeds raised will be injected into wholly-controlled subsidiary, Baoteel Resources International, which handles international trade and overseas exploration for Baosteel Group.

The bonds had terms of two years, three years, and five years. The company sold 500 million yuan worth of two-year bonds at  3.25 percent.

A total of 900 million yuan worth of three-year bonds were sold at 3.675 percent, while 1.5 billion yuan worth of five-year bonds were issued at 4.15 percent.

Together with the 3.6 billion yuan worth of bonds issued last November, Baosteel had raised a total of 6.5 billion yuan.