Investors Will Put USD1.9 Billion Into Aluminum Corporation of China Units via Debt-to-Equity Swaps
Dou Shicong
DATE:  Dec 05 2017
/ SOURCE:  Yicai
Investors Will Put USD1.9 Billion Into Aluminum Corporation of China Units via Debt-to-Equity Swaps Investors Will Put USD1.9 Billion Into Aluminum Corporation of China Units via Debt-to-Equity Swaps

(Yicai Global) Dec. 5 -- Aluminum Corporation of China Ltd. [SHA:60160] (Chalco) will introduce eight investors to pump USD1.9 billion (CNY12.6 billion) into its four wholly-owned subsidiaries through debt-to-equity swaps, easing financial pressure.

The backers include insurance giants China Life Insurance (Group) Co. [SHA:601628] and China Pacific Life Insurance Co. [SHA:601601] as well as investment companies under the Bank of China Ltd. [SHA:601988], Industrial and Commercial Bank of China Ltd. [SHA:601398] and Agricultural Bank of China Ltd. [SHA:601288], the state-owned metal group said yesterday.

The move will not change the actual control of the four units, and it will reduce the company's debt by CNY12.6 billion, reducing leverage ratios and improving the firm's financial situation, Chalco said.

Chalco approved a plan for investors to put up to CNY16 billion into the company on Oct. 27. Chalco said it set up the deal to implement the national policy on supply-side structural reform, which is of great significance to the healthy development of the enterprise.

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Keywords:   MSCI,Debt-For-Equity Swaps,Supply-Side Reform,Leverage Ratio