SHANGHAI, Jan 12 (Reuters) - China Construction Bank (CCB) has signed 35 billion yuan ($5.06 billion) worth of debt-for-equity swap framework agreements with three state-owned enterprises in the central province of Henan, a newspaper linked to the local government reported on Thursday.
CCB, one of China’s big four lenders, has led the country’s latest round of debt-for-equity swaps, signing deals with struggling, debt-laden state firms to lower their leverage and cut financing costs following instructions from Beijing.
CCB has signed swap deals with the Henan State-owned Assets Supervision and Administration Commission (SASAC), Henan Energy and Chemical Industry Group, China Pingmei Shenma Group and Anyang Iron & Steel Group, said the Henan Daily.
The deals will help the firms handle cycles in their profitability and support projects among other things, the paper added.
The deals come after CCB signed 50 billion yuan of debt swap deals with Shaanxi Coal Industry Chemical Group Co., Shaanxi Energy Group Co., and Shaanxi Non-ferrous Metal Holding Group earlier this month.
$1 = 6.9187 Chinese yuan renminbi Reporting by Beijing monitoring desk and Engen Tham in Shanghai; Editing by Simon Cameron-Moore