SHANGHAI: Shanghai Airlines will raise 1 billion yuan by issuing non-public shares to Jin Jiang International Holdings Co Ltd, currently its third largest shareholder, the carrier announced on Wednesday. This is a move aimed at lowering its high debt-to-equity ratio, currently at just over 90 percent.

The airline said Jin Jiang International would inject nearly 1 billion yuan into the company in a swap deal that would see the latter getting 220 million additional shares in the Shanghai-listed carrier.

With the deal, Jin Jiang International would overtake Bank of China Group Investment Ltd as its second largest shareholder, next only to Shanghai Lianhe Investment Ltd, which holds 35.73 percent stake in the airlines.