ChinaConstruction Bank Corp. exchanged 2.3 billion yuan worth ofnonperforming loans for equity stakes in the borrowers, The Nikkei reported Sept. 23.
Including unpaid interest, the exchanged debt amounted to2.4 billion yuan. The debt-for-equity swap resulted in the bank receiving 700million yuan in equity. The borrowers include wholesalers and manufacturers ofmachinery and electronic equipment.
China Construction Bank is the third of China's big fourbanks to take part in a debt-for-equity swap after Bank of China Ltd. and , whileIndustrial & Commercial Bankof China Ltd. is preparing to do so.
As of Sept. 26, US$1was equivalent to 6.67 Chinese yuan.