CCB announces to set up debt-to-equity swap program

China Construction Bank Corp announced on Tuesday that it has established a 24-billion-yuan ($3.57 billion) transformation and development fund jointly with Wuhan Iron and Steel (Group) Corp to reduce the company's leverage, mainly through debt-to-equity swaps. So far, the company has received half of the fund's amount.

The debt-to-assets ratio of Wuhan Iron and Steel reached 76 percent at the end of 2015, higher than the industry average of 67 percent. CCB is aiming to help lower the ratio to about 65 percent, said Zhang Minghe, head of CCB's debt-for-equity swap program.

Earlier this year, the State Council approved the merger and restructuring of two of China's largest steel producers, Baosteel Group Corporation and Wuhan Iron and Steel.