Global Steel hikes capital to P3B

Global Steel Philippines (SPV-AMC) Inc., the special purpose vehicle formed by the former National Steel Corp. (NSC), is raising its authorized capital stock to P3 billion from only P500 million.

Owned by Indian firm Global Steel Holdings, GSP is the largest steel maker in the country, taking over from the former NSC.

In its application filed with the Securities and Exchange Commission, GSP-SPV said that out of the P2.5-billion increase in its authorized capital stock, 25 percent or P2.18 billion had been subscribed and paid in full via conversion of liabilities into equity by Global Steel Holdings.

The liabilities are comprised of non-interest bearing cash advances which were partially used by the company to settle the down-payment required by the omnibus agreement on the purchase by Global Steel Holdings of NSC’s assets, finance the rehabilitation activities and meet the working capital requirements.

GSP-SPV said it will remain to be almost 100 percent foreign-owned even after the increase.

Headquartered in Iligan City, GSP’s manufacturing plant has a capacity of two million tons per year. It exports 70 percent of its production primarily to other Asian nations.

Global Steel Holdings has operations in Bosnia, Bulgaria, Libya, Nigeria, India, and the Philippines. Worldwide, the company produces in excess of 14 million tons of steel every year.