China Construction Bank Corp., the nations second-largest lender, said it plans to raise 24 billion yuan ($3.6 billion) with Wuhan Iron & Steel Group for a fund that will help lower the unprofitable Chinese steelmakers debt levels.
The two companies have already raised 12 billion yuan in the first stage of fundraising after reaching an agreement on Aug. 18, the Beijing-based lender said in a statement on its website on Tuesday. A representative for Wuhan Steel couldnt immediately be reached for comment.
The fund, the first in China thats aimed at relieving debt at state-owned enterprises, will invest in shares of Wuhan Steels units and take over some of the groups maturing debt, the 21st Century Business Herald reported earlier, citing co…
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