Sino-Ocean suspends payments, trading in eight offshore dollar notes

By Marisa Wong

Los Angeles, Sept. 15 – Sino-Ocean Group Holding Ltd. issued a notice of suspension of trading in offshore dollar-denominated securities issued by Sino-Ocean Land Treasure Finance I Ltd., Sino-Ocean Land Treasure Finance II Ltd., Sino-Ocean Land Treasure Finance III Ltd. and Sino-Ocean Land Treasure Finance IV Ltd., according to a company announcement.

Sino-Ocean Group said it is facing liquidity challenges in the short-to-medium term and is looking toward a “holistic restructuring of its offshore debts – one that ensures fair and equitable treatment to its creditors, provides a sustainable capital structure, and establishes a runway for the group to stabilize its operations.”

Given its tight liquidity position, the group has decided to suspend all payments under its offshore debt, including some offshore dollar-denominated securities, until a holistic restructuring or extension solution is implemented.

The group said it will continue to proactively negotiate with the relevant stakeholders, including banks, noteholders and financial institutions, to extend the maturity or restructure the relevant offshore debt.

The group is suspending payments under the following offshore dollar-denominated securities, all guaranteed by Sino Group:

• Sino-Ocean Land Treasure Finance I’s 6% guaranteed notes due 2024 (ISIN: XS1090864528);

• Sino-Ocean Land Treasure Finance II’s 5.95% guaranteed notes due 2027 (ISIN: XS1163722587);

• Sino-Ocean Land Treasure Finance III’s perpetual subordinated guaranteed capital securities (ISIN: XS1677024579);

• Sino-Ocean Land Treasure Finance IV’s 4¾% guaranteed notes due 2029 (ISIN: XS2034822564);

• Sino-Ocean Land Treasure Finance IV’s 4¾% guaranteed notes due 2030 (ISIN: XS2098034452);

• Sino-Ocean Land Treasure Finance IV’s 3¼% guaranteed green notes due 2026 (ISIN: XS2293578832);

• Sino-Ocean Land Treasure Finance IV’s 2.7% guaranteed green notes due 2025 (ISIN: XS2354271251); and

• Sino-Ocean Land Treasure Finance IV’s 3.8% credit enhanced green notes due 2025 (ISIN: XS2432500309).

Failure to make payments when due under the above securities may lead to creditors demanding acceleration of payment, the company warned.

In addition, due to suspension of payments under those securities and at the request of the issuers, trading in those securities on the Stock Exchange of Hong Kong Ltd. will be suspended with effect from Sept. 15 until further notice.

The company said it has appointed Houlihan Lokey (China) Ltd. (+852 3551 2300; Sino-Ocean@HL.com) as its financial advisor and Sidley Austin as its legal advisor.

The property developer is based in Hong Kong.

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