China Shanshui Cement top shareholder to fund bond redemption

China Shanshui Cement's top shareholder, Tianrui Group, said it will provide funds to the cash-strapped firm to redeem a US$500m global bond, Reuters reports.

"Tianrui Group shall cause Shanshui Cement to have sufficient funds in order to support the redemption of such 2020 Notes as required," China Tianrui Group said in a notice to the Hong Kong Stock Exchange late on Tuesday.

China Shanshui is holding an extraordinary 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 which are otherwise due in 2020.

Tianrui Group, through its wholly owned unit Tianrui International, is the biggest shareholder in China Shanshui Cement, owning 28.16 percent of its equity. China Tianrui's Chairman Li Liufa owns 70 per cent of Tianrui Group.