According to a report by Bloomberg, China Shanshui Cement Group’s dollar bonds due for repayment in 2020 rose after the cement maker announced that it would repay them before time, raising investors’ confidence after a shareholder scrap.
China Shanshui intends to begin buying back the US$500 million of outstanding notes by 19 January after the tussle triggered early redemption. The company also plans to pay the US$303.6 million of onshore bonds that defaulted in November.
Investors hope the plans signal a path to normality as new bosses, backed by biggest shareholder Tianrui Group Co., seek to take control of the cement maker’s operations from founder Zhang Caikui.
The group has been wrangling with shareholders over board management for some time, and has announced it is struggling to repay approximately RMB2 billion in onshore debt.