(Yicai Global) July 14 -- Shares of China Fortune Land Development rose after the real estate developer said it had completed restructuring CNY219.2 billion (USD30.6 billion) of domestic and foreign bonds, with creditors passing a CNY37.1 billion (USD5.2 billion) bond restructuring plan.

China Fortune Land [SHA: 600340] closed up 1.8 percent at CNY2.25 (32 US cents) a share in Shanghai today. Its market value was CNY8.8 billion (USD1.2 billion), compared with a record high exceeding CNY135.7 billion in February 2018.

China Fortune Land will sell assets to repay creditors 30 percent of the principal in cash, the Beijing-based firm said late yesterday. It will set up a trust plan with property assets held by the company and offset the redemption value not exceeding 16.7 percent of the principal of the bonds with the share of trust income rights, it added.

The remaining principal of the bonds will be rolled over for eight years, with the annual interest rate reduced to 2.5 percent, it added.

China Fortune Land defaulted in February 2021 due to a broken capital chain. The builder plans to resume construction on nearly 8.4 million square meters of property this year, having completed 7.2 million sqm.

China Fortune Land's operating income jumped 40 percent to CNY5.9 billion in the first three months of this year from a year earlier, while net profit shrank 73 percent to CNY738 million (USD103.2 million). Its total assets were worth CNY384.1 billion at the end of the first quarter.

Editor: Martin Kadiev