Sino-Ocean Group Bonds to Resume Trading in Shanghai

Sino-Ocean Group, a cash-strapped Chinese property developer, has secured an extension for the repayment of interest from debtholders, allowing the company’s bonds to resume trading in Shanghai.

Extension of Repayment of Interest

At a meeting held on October 26, nearly 74% of the bondholders passed a resolution to extend the repayment of interest on the corporate bonds and provide credit enhancement measures, according to Sino-Ocean. Consequently, trading of the corporate bonds will resume on October 30 on the Shanghai Stock Exchange, as uncertainties regarding the repayment plan have been eliminated at this stage.

Overwhelming Support from Bondholders

The resolution was passed as the company received more than 50% of votes in its favor. Earlier in October, Sino-Ocean suspended trading of its yuan-denominated bonds due to uncertainties surrounding the repayment of debt and sought a bondholder meeting to find a solution.

Details of Bonds

Sino-Ocean originally issued the bonds in 2015, with a total principal amount of CNY 3 billion ($410.1 million) and a maturity period of 10 years. As of October 10, the balance of the bonds stood at CNY 3.0 billion with a coupon rate of 4.76%.

Challenges Faced by Chinese Property Developers

Many Chinese property developers have been struggling to meet their debt obligations due to factors such as a slowing Chinese economy, higher finance costs, and weak consumer sentiment. These challenges have negatively impacted property sales in the country.