Sino-Ocean Group Holding Limited

Has a Failure to Pay Credit Event occurred with respect to Sino-Ocean Group Holding Limited?

The Eligible Market Participant who submitted the DC Question provided the following documents in support of their question:

Announcement by the Reference Entity of 14 August: https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0814/2023081400021.pdf
Yicai Global news article of 16 August 2023: https://www.yicaiglobal.com/news/sino-ocean-defaults-on-bond-interest-payment-braces-for-up-to-usd27-billion-in-first-half-losses
Asia Times news article of 16 August 2023: https://asiatimes.com/2023/08/chinas-property-crisis-hits-state-owned-developers/

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Additional Information

Issue Number:

2023083101

Submitted by:

General Interest Question

Category:

Credit Event

Coverage Election:

2014 Definitions

Status:

Closed

Outcome:

Question Decided
Procedural History
- Closed
  
  DC Decision
  Asia Ex-Japan DC Statement – 18 September 2023
  
  As the Relevant Transaction 300/5 Criteria were not satisfied in respect of 2014 Transactions in respect of Sino-Ocean Group Holding Limited (the Reference Entity), the Asia Ex-Japan DC determined whether or not an Auction should be held to settle 2014 Transactions in respect of the Reference Entity.
  The Asia Ex-Japan DC determined that no Auction will be held to settle 2014 Transactions relating to the Reference Entity and accordingly no Transaction Auction Settlement Terms will be published. 18 September 2023 (being the date the decision was announced by the DC Secretary) is the “No Auction Announcement Date” for the purposes of Section 6.11 of the 2014 Definitions.
  
  In relation to Physical Settlement for Standard Asia Corporate Transactions in respect of the Reference Entity, the NOPS Cut-off Date can be calculated in accordance with Section 8.10(b)(i) and Section 1.53 of the 2014 Definitions.
  9/18/2023 11:45am EDT
- Ongoing
  
  DC Decision
  Asia Ex-Japan DC Meeting Statement – 14 September 2023
  The Asia Ex-Japan DC met on Thursday 7 September 2023 and Wednesday 13 September 2023 to discuss whether a Failure to Pay Credit Event had occurred with respect to Sino-Ocean Group Holding Limited (the Reference Entity) due to the non-payment of the Reference Entity’s guarantee obligations in respect of the USD 700,000,000 6% guaranteed notes due 2024 (the Notes) issued by Sino-Ocean Land Treasure Finance I Limited and guaranteed by the Reference Entity pursuant to an Offering Circular dated 23 July 2014 (the OC).
  The Asia Ex-Japan DC considered the Publicly Available Information submitted by the Eligible Market Participant that raised the DC Question and a public copy of the OC.
  The Asia Ex-Japan DC determined that: (i) the guarantee given by the Reference Entity in respect of the Notes (the Guarantee) constituted an Obligation of the Reference Entity; and (ii) the Reference Entity had failed to make payments in respect of such Obligation in accordance with its obligations under the Guarantee in excess of the Payment Requirement prior to the expiry of the grace period on 13 August 2023. The Asia Ex-Japan DC also considered the 2019 Narrowly Tailored Credit Event Supplement to the 2014 Credit Derivatives Definitions and concluded that there was sufficient Eligible Information to determine that the Credit Deterioration Requirement was satisfied.
  Accordingly, the Asia Ex-Japan DC concluded that a Failure to Pay Credit Event had occurred with respect to the Reference Entity and the date of the Failure to Pay Credit Event was 13 August 2023.
  The Asia Ex-Japan DC will meet again in due course to discuss settlement of Credit Derivative Transactions referencing the Reference Entity.
  9/14/2023 05:50am EDT
- Ongoing
  
  DC Decision
  9/13/2023 12:35pm EDT
- Ongoing
  
  Asia Ex-Japan DC Meeting Statement - 7 September 2023
  The AEJ DC met today to continue discussions in relation to the DC Question. The AEJ DC is seeking public copies of documentation relating to the Notes. The AEJ DC intends to publish a further update next week.
  9/07/2023 10:00am EDT
- Ongoing
  
  DC Decision
  9/07/2023 10:00am EDT
- Ongoing
  
  Asia Ex-Japan DC Meeting Statement - 5 September 2023
  The AEJ DC met today to commence discussions in relation to the DC Question. The AEJ DC agreed to meet again on Thursday 7 September 2023 to continue discussions.
  9/05/2023 11:10am EDT
- Request Accepted by DC
  
  9/04/2023 07:05am EDT
- Pending DC Consent
  
  9/01/2023 09:55am EDT