Chinese real estate giants crisis: SUNAC will not pay a share of the bond in June
As SCMP reports, Sunac China Holdings may miss an installment of a 4 billion Yuan ($ 598 million) onshore bond due to a liquidity shortage, proving that China is undergoing a wave. of recession for the real estate sector, already in difficulty, which is combined with an evident lack of liquidity.
In a statement on Friday evening, Sunac Real Estate, a wholly owned subsidiary of the country's fourth largest developer, said it was unable to raise enough funds to make the June 30 payment after the company's sales. mother in the first five months of this year plummeted by 59%.
" The company will develop an appropriate payment plan based on financial conditions, " the statement read. " We will continue to communicate with bondholders ". this suggests either a postponement or partial payment of the title. Among other things, this is an already problematic bond, which was originally supposed to expire on May 15, but which had been extended for another 18 months in an overall agreement with creditors. Now, however, the Company is unable to guarantee the total payment of even one share, already agreed, of the security itself. From previous agreements, the company had completed the payment of the first installment of 400 million Yuan, equal to 10% of the capital, last May 15th, and was supposed to repay another 400 million Yuan in the second installment on June 30th. Sunac Real Estate stated that the liquidity for the second installment would not be ready before the deadline, so this plan also comes to skip.
After all, Chinese real estate sales are in hiding, especially if they come from large groups
Real Estate Developer Sales. Source Bloomberg
This drop in turnover can only make the achievement of financial objectives, even previously revised downwards, extremely complex.
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The article Crisis of Chinese real estate giants: SUNAC will not pay a share of bonds in June comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/crisi-colossi-immobiliari-cinesi-sunac-non-paghera-una-quota-di-bond-a-giugno/ on Wed, 29 Jun 2022 10:08:52 +0000.