Hunan Province-based Chinese steelmaker Hunan Valin Iron & Steel Group has received an equity investment of RMB 4.5 billion ($0.66 billion) from Shanghai Pudong Development Bank, as part of a project to transform the company’s debt into equity, as reported by local media in Changsha, Hunan.
Accordingly, the total amount of equity investment in this project will amount to RMB 12.5 billion ($1.83 billion). Valin Group will use the funds to eliminate debt, which will lower its debt-to-assets ratio by eight percentage points.
Currently, Valin Group is implementing a three-year revitalization plan. In the January-May period this year, Valin Group achieved a gross profit of RMB 1.164 billion ($0.17 billion), while its gross profit for the current year is expected to be RMB 1.5 billion ($0.22 billion).