Sunac pays local bondholders after defaulting on dollar notes, showing that cash goes first to domestic creditors
- Sunac Real Estate Group sent an initial planned payment on 400 million yuan of notes due on May 15 to investors via the bond’s trustee
- Sunac China will make the first principal payment on that date, according to an exchange filing on Friday night
Sunac Real Estate Group sent an initial planned payment to investors via the bond’s trustee, according to at least two noteholders who are not authorised to speak publicly about their holdings. It’s the first principal payment under an 18-month extension agreed to by the note’s holders, according to an April 1 filing.
The due date under the plan for a 400 million yuan (US$59 million) payment is May 15. Sunac China will make the first principal payment on that date, according to an exchange filing on Friday night.
Even as the clampdown on property triggered a wave of defaults among borrowers, holders of domestic notes have been receiving payments or sweetened offers on extension proposals. Most Chinese firms’ payment failures in 2022 have been on offshore notes, a sharp reversal from previous years that’s left overseas creditors with billions in losses and waning power.
