Property developer Sunac China misses US$29.5m coupon payment

[HONG KONG] Sunac China has not paid a coupon worth US$29.5 million due Monday for a dollar bond, a person with knowledge of the matter said on Tuesday, marking the first missed offshore payment for the country's third largest property developer by sales.

The payment for the 7.96 per cent bond maturing in October 2023 has a 30-day grace period before triggering a default. Another source close to the company said Sunac is trying to find a funding solution to meet the payment deadline.

Sunac declined to comment.

China's property sector has been hit by series of defaults on offshore debt obligations, highlighted by China Evergrande Group, once the country's top-selling developer but now the world's most indebted property company.

Sunac's bond in question traded at 27.55 cents on the dollar as of 1040 GMT, compared with 34.269 cents on Monday morning.

The firm said last month it was holding communications with offshore creditors on debt solutions after downgrades by global rating firms, as well as seeking payment extensions with onshore bondholders.

It extended the principal payment of a US$627.91 million puttable bond due on April 1 by 18 months.REUTERS