China's Yuexiu Group signs debt-to-equity swap agreement with ICBC

Yuexiu Real Estate Investment Trust

09/01/2017 10:06

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  601398.SS  1398.HK  
(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  0123.HK  and Yuexiu Real Estate 
Investment Trust  0405.HK  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).  urn:newsml:reuters.com:*:nL4N1EL2IE 
 
 (Reporting by Beijing Monitoring Desk and Engen Tham in 
Shanghai; Editing by Himani Sarkar) 
 ((engen.tham@thomsonreuters.com; +86-21-6104-1769; Reuters 
Messaging: engen.tham.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA DEBT/SWAP GUANGZHOUYUEXIU