Yongnam Holdings (SGX:AXB) subsidiary, Yongnam Engineering and Construction, entered into novation agreements for the sub-contracts of two contracts with China State Construction Engineering, according to a filing with the Singapore Exchange on Monday.

Through the novation agreements, a replacement sub-contractor will perform and be bound by the terms of each contract in every way.

Meanwhile, China state and Yongnam Engineering and Construction will release and discharge each other from the performance of other party's obligations, duties and liabilities under the sub-contracts.