Property developer Sunac China Holdings Ltd plans to classify onshore bonds worth 14.6 billion yuan ($2.07 billion) into two groups and extend the repayment periods by up to four-and-a-half years, two sources with knowledge of the matter said.
Sunac earlier this year extended repayment for a 4-billion yuan bond. It is now proposing to further extend the repayment of 3.4 billion, the unpaid amount of this tranche, by three years and nine months to September 2026, said the sources.
Full repayments for the rest of the onshore bonds will be extended by four-and-a-half years to 2027, according to the sources, who declined to be named as they are not authorised to speak to the media.
Sunac is among a growing number of Chinese developers to have defaulted on debt obligations in the past year. China’s property sector has faced a series of headwinds as regulators have clamped down on excessive borrowing, including slower property sales, bond defaults, and stalled construction.
Sunac, which has been in talks with creditors to restructure 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 installments will rise over time, said the two sources.
Sunac will offer its bondholders interest from its property 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 proposed to extend the full repayment of its onshore bonds to May 2027. The plan has not received approval of its creditors yet, according to the two sources.
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