Property developer Sunac China to extend payment for US$633m bond

[HONG KONG] Property developer Sunac China is planning to extend payment on a US$627.85 million onshore puttable bond due April 1 , a source close to the company said on Wednesday, and it is in preliminary negotiations with large holders.

The move came after the country's No 3 property developer by sales said late last month it had prepared sufficient funding to repurchase the bond, and earlier this month added a sell-back date of April 2023, on top of an existing option to sell it back this April.

Details of the extension proposal have not yet been finalised, the source added, and they will require bondholders'approval.

Sunac declined to comment.

Moody's downgraded Sunac's corporate family rating (CFR) on Tuesday to Caa1 from B1, and the company's senior unsecured ratings to Caa2 from B2 while its outlook remained negative, reflecting heightened liquidity and refinancing risks.

Downgrades by rating agencies in recent weeks and deepening worries over the sector's debt have driven some bondholders to request early repayment, tightening Sunac's liquidity, financial intelligence provider REDD reported last week. REUTERS