State-backed Sino-Ocean seeks to extend all onshore bond maturities - note

Reuters01-11

HONG KONG, Jan 11 (Reuters) - State-backed Sino-Ocean Group is seeking to delay onshore bond payments again by extending maturities of all of its 16.6 billion yuan ($2.32 billion) corporate bonds by "a longer time period", according to a note to bondholders seen by Reuters on Thursday.

The Beijing-based property developer said it plans to extend the maturity of four of its bonds by no more than 30 months, in an effort to help stabilize its operation and preserve its overall value, according to the note.

Many property developers have repeatedly extended payments of their onshore debt as the sector slipped into a debt crisis since mid-2021, while many offshore debt issues are already in default.

Sino-Ocean said in the note its liquidity has not improved because overall sales have been declining continuously.

Coupon payments for 2024 would be delayed by one year under the plan, which covers four onshore credit bonds, and the principal repayments would be made in instalments beginning from the 15 months.

Bondholders are scheduled to vote on the plan in the next two weeks.

Sino Ocean has suspended the trading of the four bonds, namely H15Sino-Ocean3, H19Sino-Ocean2, H21 Sino-Ocean 1 and H21 Sino-Ocean 2 from Thursday.

($1 = 7.1574 Chinese yuan renminbi)

(Reporting by Xie Yu; Writing by Clare Jim; Editing by Tomasz Janowski)

((clare.jim@thomsonreuters.com;))

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