China Shanshui Cement's top shareholder to fund bond redemption

Byszheng

Updated Mon, 30 Nov 2015 16:54:17 GMT

According to a report by Reuters, China Shanshui Cement's top shareholder, the Tianrui Group, has announced that it will provide funds to the cash-strapped company to redeem a US$500 million global bond. The announcement has raised investor hopes that it may avoid defaulting on them.

China Shanshui is set the hold a general meeting on 1 December to decide on certain changes in the board of directors. The changes could trigger a contractual obligation to redeem the bonds that are otherwise due in 2020.

Tianrui Group is the biggest shareholder in China Shanshui Cement, owning 28.16% of its equity. China Tianrui's Chairman Li Liufa owns 70% of Tianrui Group.