Bohai Steel Group raised debt-equity swap program
Recently, the debt of nearly 200 billion yuan Bohai Steel Group (hereinafter referred to as the Bohai Steel Group) debt restructuring, the drop in corporate leverage in the background, made new progress.
The new fiscal reporter from informed sources close to the claims, the initial program is the Tianjin Municipal Government set up a fund to undertake debt Bohai Steel Group in the bank, only 3 per cent per annum. Thus, some sort of relief from the Bohai Steel Group bank debt quagmire.
Fund money then set come from? The aforementioned sources, the Foundation for the introduction of social capital, which the bank financial funds can participate. So, it is likely to make in accordance with the proportion of debt with creditor banks to finance capital subscription funds, thereby replacing bank debt, but the exact size, duration, asset pricing were given.
This debt is essentially non-performing assets of banks Bo steel. Previously, according to the new financial reporter, the Commission investigation by debt, financial debt Bo steel is 192 billion yuan, the total assets of nearly 290 billion yuan, if coupled with commercial debt, Bo steel insolvent. 105 creditors, Bank of Beijing, Bank of Tianjin, Tianjin Binhai Rural Commercial Bank, China Construction Bank, Shanghai Pudong Development Bank, Industrial Bank and Bank of China, involving funding of more.
According to the new financial reporter learned from sources close to the Bohai Steel Group at the Tianjin municipal government fund set up, not just to solve the problem of debt Bo steel, but for all the highly indebted state-owned Tianjin deleveraging program. "As Bo Steel Group in overseas sent a debt default issue Bohai Steel, Tianjin affected the entire corporate credit rating, bank loans pumping pressure loan idea."
This approach is the state-owned capital operating companies to follow suit and set up a pilot fund. In February this year, the state announced that the SASAC Chengtong Group, China State holding two new state-owned capital operating company to carry out the pilot, the two companies have set up one hundred billion fund to reduce leverage state-owned enterprises.
This is why the debt-matching policy "combination punches." Wealth of new reporter was informed that the current round of debt guidance also said that implementation of the subject in addition to AMC, also including investment banking subsidiary set up state-owned capital investment and operation of companies and insurance asset management companies, in order to introduce more social funds.
However, close to the above Bohai Steel Group pointed out that the debt-equity swap programs may not be able to do. "First, Tianjin SASAC, no financial background of a dry, deputy director of thinking is still stuck in the traditional set of industrial pattern; the second is now state-owned enterprises to the city tube Bo Steel Group, Products Group, TEDA Investment Holding and City Group's total debt has nearly 80 million, realizable assets and can basically no great risk; Third, no one dared to be responsible for this matter. "
In June, the SASAC Tianjin Bohai Steel Group has completed the split, has Bo Steel Group subsidiary of Tianjin Pipe Group, Tianjin Iron and Steel Group, Tianjin-day Iron Metallurgy Group and Tianjin Metallurgical Group has been independent from the Bohai Steel Group, in Tianjin City of directly supervised companies. Bohai Steel Group debt in question, it will be split among the five companies, wound up the new financial reporter learned that the debt restructuring plan will specifically covered 105 financial institutions do rollover process, loan interest to play eight to 10% .