Asia Unhedged | Agricultural Bank of China signs US$10.2 billion worth of debt-equity swaps
A paramilitary policeman walks past an Agricultural Bank of China building in Beijing, China. Photo: Reuters, Thomas Peter
A paramilitary policeman walks past an Agricultural Bank of China building in Beijing, China. Photo: Reuters, Thomas Peter
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Agricultural Bank of China signs US$10.2 billion worth of debt-equity swaps

A new asset management unit will handle agreements with eight companies

April 1, 2017 2:07 AM (UTC+8)

China’s third-largest lender by assets, Agricultural Bank of China (ABC), has signed debt-to-equity swap deals with eight companies worth more than US$10 billion, reports Caixin.

ABC’s president Zhao Huan said during a news conference on Wednesday that the bank is in talks to undertake more than 20 debt-for-equity swap agreements from the eight enterprises. He added that the bank intends to create an asset management unit to handle the deals.

The bank reported net profits of US$26.7 billion for 2016, up 1.8% from the previous year, though income from interest declined for the first time, dropping 9.6%.

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