On March 24, the news (www.thepaper.cn) learned that Sunac is planning to hold a communication meeting with bondholders of “20 Sunac 01 (163376.SH)” in the near future to discuss the extension plan.
A person close to Sunac said that in response to the public market debt due in the second quarter of 2020, Sunac has actively promoted asset disposal, special financing, and collection. However, due to the influence of the above-mentioned policies and the market, the plan has been delayed, and the extension is a “last resort” choice. At present, Sunac’s debt rollover is only for the rigid debt due in April, and it is not a comprehensive rollover. In addition, Sun Hongbin’s personal guarantee shows the responsibility of the company’s actual controller and his optimism about the company’s future development, which also gives the market stronger confidence.
News reported on March 23 the preliminary extension plan of “20 Sunac 01”. The plan shows that the bond is to be extended for 24 months and the principal is repaid quarterly. 5% of the principal will be repaid from July 1, 2022, and 10% of the principal will be repaid on October 1; 10% of the principal will be repaid in January 2023, 10% in April, 15% in July, and 15% in October %; 15% will be repaid in January 2024 and 20% will be repaid in April. In terms of interest, Sunac plans to pay interest within 20 days after the sell-back date. In addition, Sunac China Chairman Sun Hongbin will provide unlimited joint liability guarantee for the bond. The bond was issued on April 1, 2020, with an issuance scale of 4 billion yuan, a coupon rate of 4.78%, and a bond term of 4 years.
On the morning of March 23, “20 Sunac 01” fell by more than 20%. The Shanghai Stock Exchange pointed out that the bond transaction experienced abnormal fluctuations. Trading of the bond was suspended from 11:20 and resumed from 13:20. After the resumption of trading, “20 Sunac 01” continued to decline. As of the close on March 23, “20 Sunac 01” reported 36.83 yuan, a decrease of 41.54%.
After the market opened in the morning of March 24, the price of “20 Sunac 01” went up. As of press time, “20 Sunac 01” reported 41.5 yuan, an increase of 12.68% .