Embattled property developer Sunac China said on Thursday it is seeking to raise HK$1.21 billion ($155.70 million) to repay its existing corporate debt, at a time when China is dealing with a downturn in the property market.
Sunac will place around 489 million shares, representing 5.60% of its existing share capital, at HK$2.465 apiece.
The Chinese property giant said it intends to utilize the net proceeds from the subscription primarily to support the long-term solutions for its onshore corporate bonds, the payments of which have been extended to 2024 end.
“The Board considers that the placing and the subscription will help the group to better reach solutions on its onshore public debentures,” Sunac China said in its statement.
In August, the beleaguered property developer reported a half-year loss of 14.96 billion yuan ($2.10 billion), primarily hit by a housing market downturn, among other unspecified causes.
China’s property sector, a cornerstone of the country’s economy, has been in a rough spell since 2021 as a regulatory drive on developers using excessive leverage caused a liquidity crisis.
Source Homevior.in
