Distressed state-owned asset manager China Huarong announced via an exchange filing on Wednesday that it is set to receive RMB 42bn ($6.6bn) via a non-public share sale to a consortium of state-backed investors as part of its bailout announced in August. As part of the transaction, Citic Group will hold 23.46% of Huarong while the Ministry of Finance’s stake will be reduced to 28% from 57%. The company also said that it is lining up the sale of its 40.53% stake in Huarong Xiangjiang Bank and its 79.92% stake in Huarong Financial Leasing. The news comes just a day after the company received approval to raise RMB 70bn ($11bn) via a sale of onshore bonds. The latest proposed share sale is expected at a price of RMB 1.02/share, a 23% premium to the last closing price before its shares were suspended from trading.

Huarong’s bonds have been trending higher with its 3.375% 2030s up 2 points this week to now trade at 89.26 cents on the dollar.

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