Sino Ocean Group bonds will resume trading on the Shanghai Stock Exchange after the cash strapped Chinese real estate developer's grace bond interest redemption plan was approved by bondholders.
COSCO Group stated on Friday that at its meeting on October 26th, nearly 74% of bondholders passed a resolution allowing for a grace period for the redemption of corporate bond interest and providing credit enhancement measures.
The developer stated that the uncertainty of the current repayment plan has been eliminated, and the company's bonds will resume trading on the Shanghai Stock Exchange on October 30th.
This bill was passed through a vote, with over 50% of the votes in favor.
In early October, COSCO Group suspended the trading of some of its bonds denominated in Chinese yuan due to uncertainty over the repayment plan and sought to convene a bondholder meeting to reach a solution.
Sino Ocean Group issued these bonds in 2015, with a total principal amount of RMB 3 billion ($410.1 million) and a maturity of 10 years. The company stated that as of October 10th, the balance of related bonds was RMB 3 billion, and the current coupon rate was 4.76%.
Due to factors such as the slowdown in China's economic growth, rising financing costs, and weak consumer confidence, many Chinese real estate developers have faced the issue of whether they can fulfill their debt commitments.