Chinese property developer Sunac has sought an extension of two years to repay its RMB 2.3bn ($345mn) bond due on 13 June as per sources. The company plans to pay only the interest component on the maturity date while the principal component of $345mn will be paid in four installments of 10%, 15%, 20% and 55% by June 2024. Sunac is trying to ease the liquidity crunch by extending its debt payment and disposing of assets. Its sales has been on the decline since the pandemic and weak finances have made it difficult to raise new funds. The company has dollar bonds worth $7.7bn outstanding on its books. As per sources, the company was considering restructuring its offshore debt and was looking to state-owned firms for strategic investments in it. Last month, Sunac made a payment of RMB 400 ($59mn) on its local bonds while it defaulted on a $29.5mn coupon payment on its 7.25% dollar bond due 2023.

Sunac’s dollar bonds were trading at 17-21 cents to a dollar.

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