Property developer Sunac China Holdings Ltd plans to categorize onshore bonds worth 14.6 billion yuan ($2.07 billion) into two groups and extend repayment periods to four and a half years, said two sources with knowledge of the matter.
Earlier this year, Sunac extended repayment of a 4 billion yuan bond. It now proposes to further extend the repayment of 3.4 billion, the unpaid amount of this installment, by three years and nine months until September 2026, the sources said.
Full repayments for the remaining onshore bonds will be extended by four and a half years until 2027, according to the sources, who declined to be named because they are not authorized to speak to the media.
Sunac is among a growing number of Chinese developers to have defaulted over the past year. China’s property sector has faced a series of headwinds as regulators have clamped down on excessive borrowing, including slowing property sales, bond defaults and stalling construction.
Sunac, which is in talks with its creditors to restructure the onshore bonds, did not respond to Reuters’ request for comment.
The Beijing-based developer will start repaying the principal of these bonds from 2025, with cash installments every three months, while the value of the installments will increase over time, the two sources said.
Sunac will offer its bondholders interest from its real estate and tourism projects as credit enhancement measures, and the plan will be voted on by creditors in early December.
Separately, smaller rival Logan Group Co. earlier offered to extend full repayment of its onshore bonds until May 2027. The plan has yet to receive approval from its creditors, according to the two sources.
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