Shandong Steel Group inks debt-for-equity swap deal with ICBC

Friday, 26 May 2017 09:53:58 (GMT+3)   |   Shanghai
       

Shandong Province-based Chinese steelmaker Shandong Iron & Steel Group Co., Ltd (Shandong Steel Group) has announced that it has inked a debt-for-equity swap agreement with Industrial and Commercial Bank of China (ICBC). 
 
According to the agreement, ICBC will provide RMB 26 billion for Shandong Steel Group to reduce its debt and in exchange ICBC will become a shareholder of Shandong Steel Group.

In August 2016, the China Banking Regulatory Commission (CBRC) has stated that bank debts of Chinese steel and coal enterprises which are struggling to repay them may be converted into equity in the enterprises. The debt-for-equity swaps would reduce the debt burden on the coal and steel businesses and ease the financing difficulties experienced by the coal and steel industries and allow them to embrace better development opportunities.

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