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Bond Market News
Sunac Said to Seek Converting All Offshore Bonds Into Equity, Sources Say
April 16, 2025
Sunac China is said to be in talks with major creditors to convert all of its offshore dollar bonds into equity, as per sources. The proposed plan involves issuing mandatory convertible bonds with varying conversion timelines that would ultimately become shares. Discussions are said to be ongoing, including the pricing of the bonds, and final terms could change. This move comes as Sunac faces persistent liquidity issues and becomes the first major Chinese builder to pursue a second debt restructuring since the nation’s property crisis began. The company previously defaulted on a dollar bond in 2022 and restructured in 2023. With a key liquidation hearing in Hong Kong set for April 28, Sunac is under pressure to finalize an agreement. China Cinda HK Asset Management has pushed for Sunac’s liquidation, after receiving a short adjournment from the court. In related news, new home prices in China continue to decline, reflecting market uncertainty.
Sunac’s dollar bonds continue to trade at deeply distressed levels of 10 cents on the dollar.
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