Money-losing Yunnan Tin Group, owned by the Yunnan provincial government, has signed an agreement with China Construction Bank under a program that allows SOEs with good prospects to exchange their debt for equity investment with the direct involvement of banks. The deal will entail the conversion of $1.5 billion of bank debt into equity, according to Caixin. Under the agreement – which CCB said is the first loan-for-equity swap involving a local government-owned company under the program – CCB Trust Co., a subsidiary of the bank, will set up a fund with Yunnan Tin Group Co. The fund will raise capital from other financial institutions and invest in Yunnan Tin Group and its subsidiaries. The tin group was previously bailed out in a debt-for-equity swap at the turn of the millennium.