Sunac China working to secure funding to complete projects, chairman says

Sunac Services Holdings

30/03/2023 08:49

HONG KONG, March 30 (Reuters) - Sunac China  1918.HK 
chairman Sun Hongbin has told investors the embattled property
developer has been actively working with asset managers and
applying for official funding to ensure developments are
completed. 
    Sunac has introduced distressed asset managers (AMC) into 20
billion yuan ($2.91 billion) worth of major projects, and
implemented 11 billion yuan of loans from the government special
fund, he said.
    Sun made the comment at an online meeting late on Wednesday
in which he delivered a briefing about the firm's plan to
restructure $9 billion of its offshore debt.
    A major developer in the country, Sunac said on Tuesday it
has reached agreements with a group of offshore creditors to
convert its debt into new notes and convertible bonds backed by
its Hong Kong-listed shares, and shares in its property
management unit, Sunac Services  1516.HK .
    Many defaulted Chinese developers are still struggling to
strike deals with creditors to extend repayments, and seek funds
to complete projects for homebuyers - a priority of the central
government.
    The firm restructured its onshore debt early this year by
extending the maturity of bonds worth 16 billion yuan by an
average of 3.5 years.
    Sunac will continue to negotiate with onshore banks to
extend repayment of project loans, Sun added, including through
solutions by introducing AMC capital. 
    Talking about the offshore debt restructuring plan, Sun said
it will be paramount for restoring the developer's operations,
so it must be implemented quickly.
    The management team has "deeply reflected" on the cause of
the firm's liquidity problems, he said, and linked them partly
to "its habit of chasing after scale that led to overly
optimistic and radical investments". 

($1 = 6.8771 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Gerry Doyle)
 ((clare.jim@thomsonreuters.com;))