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Sunac China Defers Payment on $558m Bond Till 2024

Struggling Beijing developer Sunac is moving to delay repayment for a 4-billion-yuan ($558m) bond for a third time by pushing the deadline back by six months, sources said


Sunac China has moved to defer final repayment of a $558m bond till March 2024.
An advertisement of property developer Sunac China Holdings is seen at a residential complex in Shanghai. File photo: Reuters.

 

Embattled Chinese property developer Sunac China is seeking to delay the repayment for a 4-billion-yuan (over $558.3 million) bond for the third time by pushing the deadline back by another 6 months, sources said on Tuesday.

Under the changes, Sunac will not pay the two remaining payments due this year, and the last instalment will be set back to March 31, 2024 from September 30, 2023, the sources said.

Sunac declined to comment.

The Beijing-based developer is struggling to repay its creditors and it is undergoing an offshore debt restructuring after defaulting on some dollar bonds this year.

The payment extension for the onshore bond in question will require bondholders approval, the sources said.

The bond matures on April 1, 2024, but investors had a put option to sell back to the company on April 1 this year.

In April, Sunac extended the principal payment by 18 months, and then in June reduced amortization payments due in June and September.

 

  • Reuters with additional editing by Jim Pollard

 

 

ALSO SEE:

 

Top China Developer Sunac Seen on Brink of Bond Default

 

China Evergrande Debt Crisis: Five Developers on the Brink

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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