Sino-Ocean Group Bonds to Resume Trading in Shanghai After Winning Debt Extension

By P.R. Venkat

Sino-Ocean Group bonds will resume trading in Shanghai after the cash-strapped Chinese property developer secured an extension for the repayment of interest from debtholders.

At a meeting held Oct. 26, nearly 74% of the bondholders passed a resolution allowing for extension of the repayment of interest on the corporate bonds and the provision of credit enhancement measures, Sino-Ocean said Friday.

Trading of the corporate bonds will resume Oct. 30 on the Shanghai Stock Exchange as uncertainties relating to the repayment plan have been eliminated at this stage, the developer said.

The resolution was passed as the company secured more than 50% of the votes in its favor.

Earlier in October, the company suspended trading of its yuan-denominated bonds, citing uncertainties about repayment of the debt, and sought a bondholder meeting to arrive at a solution.

Sino-Ocean had issued the bonds in 2015 with a total principal amount of 3 billion yuan ($410.1 million) and carrying a 10-year maturity period. As of Oct. 10, the balance of the bonds was at CNY3.0 billion with a coupon rate of 4.76%, it said.

Many Chinese property developers have been facing problems meeting their debt commitments because of a slowing Chinese economy, higher finance costs and weak consumer sentiment, which have hurt property sales.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

October 27, 2023 01:36 ET (05:36 GMT)

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