On December 26, ICBC signed the Debt-for-Equity Swap Cooperation Framework Agreement with three key enterprises in Shanxi Province including Taiyuan Iron & Steel (Group) Co., Ltd. (“Taiyuan Iron& Steel Group”), Datong Coal Mine Group Co., Ltd. (“Datong Coal Mine Group”) and Yangquan Coal Industry (Group) Co., Ltd. (“Yangquan Coal Industry Group”). According to the agreement, ICBC will conduct debt-for-equity swaps with the three enterprises to increase investment and equity in the enterprises to replace the outstanding loans and realize the transfer between creditor’s right and equity.

Since the State Council promulgated the Opinions on Active and Stable Reduction of the Leverage Ratio of Enterprises and the Guidance on Market-Oriented Debt-for-Equity Swap, ICBC has actively responded and selected the above three state-owned key enterprises with high asset-liability ratio, important role in local economic development and significant growth potential to carry out debt-for-equity swap cooperation. The debt-for-equity swap arrangement may reduce corporate financial leverage, improve corporate governance structure and enhance long-term development tenacity of the enterprises.

ICBC will earnestly implement the strategic arrangements made by CPC Central Committee and State Council on promoting the structural reform at the supply side and placing focus on cutting overcapacity and excess inventory, deleveraging, reducing costs, and strengthening weak points. The debt-for-equity swap will be fully utilized to guide social capital into the real economy and improve corporate governance structure of real economy enterprises to realize economic restructuring and upgrading, and contribute to growth of the real economy.