SHANGHAI, Dec 30 (Reuters) - Bank of China (BoC) has signed a 10 billion yuan ($1.44 billion) debt-for-equity swap framework agreement with state-owned Gansu Provincial Highway Aviation Tourism Investment Group, the lender said on its website on Friday.
China’s banks have increased their debt-for-equity deals with state-owned enterprises after the government re-launched the scheme in October to ease the borrowing overhang of the country’s struggling state firms.
BoC, China’s fourth-biggest lender, will invest in Gansu Provincial and its subsidiaries to repay bank loans, debt financing tools and other interest-bearing burdens to reduce financing costs and bolster capital strength, said the notice.
On Wednesday, China Construction Bank Corp signed around 30 billion yuan ($4.31 billion) worth of debt-for-equity swaps with eastern Anhui province’s state-owned coal and steel firms.
$1 = 6.9470 Chinese yuan renminbi Reporting by Engen Tham in Shanghai; Editing by Christian Schmollinger