Sino-Ocean (HKG:3377) said its wholly owned subsidiary, Beijing Sino-Ocean, agreed to sell a 75% equity interest in a Sanya property project company and replace previously pledged credit enhancement supporting several onshore bonds, according to a Wednesday Hong Kong bourse filing.

Shares of the property investment firm were down more than 2% in Thursday morning trade.

The stake sale relates to Sanya Tongdi Manor Investment, which owns the Sanya Tongdi project, the filing said.

Revenue rights attached to the project's 75% equity interest had previously been pledged as credit enhancement for four corporate bonds.

Following the disposal, Sino-Ocean Holding will provide replacement collateral by pledging a confirmed 50 million yuan creditor's right against Shenzhen Yitian Group to maintain bondholder protection.

The unit said the disposal is intended to facilitate the development of the land parcel and mitigate risks from delayed construction.

Proceeds of about 3.9 million yuan will be used to fund partial cash repurchases of the affected bonds, with roughly 2.3 million yuan allocated for that purpose, the filing showed.