BEIJING, Oct. 19 (Xinhua) -- The Industrial and Commercial Bank of China (ICBC) recently signed debt-for-equity swap framework agreements with some domestic private enterprises, cs.com.cn reported on Thursday.
It is noted that north China's Shandong Chenming Paper Holdings Limited signed a framework agreement with ICBC Financial Asset Investment Co., Ltd. on Tuesday, with the two parties currently planning debt-for-equity swaps no less than 3 billion yuan.
Eternal Asia, a company from south China's Guangdong province also signed a market-oriented debt-for-equity swaps framework agreement with ICBC Financial Asset Investment Co., Ltd with total value of 3 billion yuan.
Other private enterprises such as Kangmei Pharmaceutical Co., Ltd., Lian Tai Group, and Golden Concord Holdings Limited also inked the framework agreements with ICBC.
Such deals could optimize private enterprises' governance structure, reduce financing cost as well as prevent funding risks, according to industry insiders.
It is reported that as a wholly-owned subsidiary of ICBC, ICBC Financial Asset Investment is one of the first institutions approved in China to engage in the market-oriented debt-for-equity swaps, with a registered capital of 12 billion yuan. (Edited by Jiang Feifan, Niu Huizhe)
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