BEIJING Jan 9 China's state-owned Yuexiu Group
has signed a framework debt-to-equity swap agreement with the
Industrial and Commercial Bank of China
(ICBC), according to a statement posted by the lender on its
official website on Monday.
China has sought to revive its lumbering state-owned firms
that have been dogged by inefficiencies and oversupply as
economic growth slows.
China's largest lender said it will help Yuexiu Group, which
counts Yuexiu Property and Yuexiu Real Estate
Investment Trust among its subsidiaries, to optimize
its financial structure.
ICBC said debt-to-equity swaps can help reduce corporate
financial leverage, improve corporate governance and enhance
long-term development. The bank did not disclose how much it
will invest in the swap.
In December, ICBC signed debt-for-equity swaps with Taiyuan
Iron & Steel (Group), Datong Coal Mine Group and Yangquan Coal
(Reporting by Beijing Monitoring Desk and Engen Tham in
Shanghai; Editing by Himani Sarkar)