China Shanshui subsidiary enters debt investment framework agreement

By Caroline Salls

Pittsburgh, Dec. 15 – China Shanshui Cement Group Ltd. said wholly owned subsidiary Shandong Shanshui Cement Group Ltd., Tianrui Group Co. Ltd. and investor and lender China Cinda Asset Management Co. Ltd. (Shandong Branch) entered into a debt investment framework agreement that calls for an up to RMB 8 billion investment.

According to a news release, Cinda Shandong or its related parties intend to carry out a debt investment in Shandong Shanshui in order to resolve default issues and to replenish its liquidity.

To the extent that the agreement is in compliance with all the relevant listing rules, China Shanshui said it will cooperate with Cinda Shandong, which will acquire the defaulted bonds issued by Shandong Shanshui in the open market in tranches based on consideration negotiated with Shandong Shanshui’s creditors.

In addition, Cinda Shandong or its related parties will grant an entrusted loan to Shandong Shanshui through Nanyang Commercial Bank (China) Ltd., a wholly owned subsidiary of China Cinda Asset Management.

China Shanshui is a cement manufacturing company based in Jinan, China.

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