(Yicai Global) Oct. 13 -- China's state assets regulator has approved the country's first debt-to-equity swap, just days after the cabinet gave the green light to the policy of paying off corporate debt through the private placements of shares.
China First Heavy Industries [SHA:601106] will pay back CNY1.55 billion (USD230.4 million) by issuing almost 320 million shares to its parent China First Heavy Industries Group Co., it said in a stock exchange filing yesterday.
The State Council, or cabinet, announced two major policies on deleveraging and debt-to-equity swaps on Oct. 10. Insiders expect listed firms to be the first to make use of the new policies.
China First Heavy's shareholders support the plan, which will be implemented once the securities regulator has given its approval, the company said.