China Construction Bank (CCB) has reached a debt-to-equity swap deal with Yunnan Tin Group.
Under the deal, CCB, China's second biggest lender, will give the world's biggest tin producer and exporter around 5 billion yuan, in its first round of investment to swap some high-interest debt.
This is part of a 10 billion yuan deal aimed at lowering the leverage of Yunnan Tin by 15 points.
The money will be raised from institutional investors, such as insurance asset management companies, pension funds, securities firms, and qualified individual investors through wealth management products.
This is the first debt-to-equity swap between a Chinese bank and a local government-owned enterprise.
For more on this, we are joined by CRI business analyst Einar Tangen.
