China Shipbuilding Industry Corporation (CSIC), one of the two state-run shipbuilding conglomerates in China, has announced that it plans to raise RMB3.6bn ($588m) through non-public share issue.
CSIC said the new share issue has been approved by the state council and proceeds will be used to repay debts. The company said it hopes to ease financial pressures through the fund raising.
CSIC currently has total liabilities of RMB130.6bn, and its asset to liability ratio has reached 69.1%. It also has an annual interest expenditure of up to RMB2.5bn.