China Shanshui seeks to refinance debt and trim 2014 capex

China Shanshui Cement is seeking to refinance debt and cut capital expenditure by half this year after earnings fell for a second year, according to CreditSights Inc.

The cement maker, which had CNY6.9bn (US$1.1bn) of short-term debt including loans and corporate bonds at the end of last year, plans to use proceeds from a newly issued domestic medium-term note to repay CNY900m due today. Management is still considering how to refinance a CNY1.5bn bond which matures in July.

Shanshui Cement’s total debt was CNY16.5bn as of 31 December from CNY13.5bn at the end of 2012, company data cited by CreditSights show. Net income fell to CNY1bn from CNY1.5bn over the same period.