Sunac China seeks to extend $345 million onshore bond repayments by two years

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BEIJING: Cash-strapped Chinese developer Sunac China is seeking to extend repayment of an onshore bond due June 13 by two years, sources said on Wednesday.

Sunac plans to pay only the interest on the maturity date on Monday, while repaying the 2.3-billion-yuan ($345 million) debt in four instalments of 10 per cent, 15 per cent, 20 per cent and 55 per cent of the principal through June 13, 2024.

The country’s No.3 property developer by sales is scrambling to ease its liquidity pressure by extending debt obligations and disposing of assets, after its sales were hit by COVID-19 this year and it was unable to raise new financing.

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Last month, Sunac missed the deadline for coupon payments on a $742 million offshore bond and said it did not expect to make payments coming due on other bonds, adding to a wave of defaults in China’s debt-laden property sector.

With $7.7 billion in dollar bonds, Sunac is the fourth-largest issuer among Chinese developers.

A source has told Reuters Sunac was considering a restructuring of its offshore debt to extend payments. It was also talking to state-owned entities about strategic investments in the firm.

Source: Reuters

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