BEIJING, Jan 9 (Reuters) - 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 Industry (Group). (Reporting by Beijing Monitoring Desk and Engen Tham in Shanghai; Editing by Himani Sarkar)