Property developer Sunac China did not make an interest payment on a $742 million offshore bond by the time a grace period expired and expects it will not make payments on other bonds coming due, the company said on Thursday, reports Reuters. It had been due to pay $29.5 million in interest on the October 2023 bond that was required to be repaid last month.
Sunac, which is mainland China’s third-largest developer by sales, said it had also not made interest payments on three other offshore bonds that are currently in a grace period of 30 days. Sunac said the outstanding amount on the October 2023 bond was now $742 million.
“The Group’s contracted sales have continued to decline significantly, while access to new financing has become increasingly difficult with more liquidity issues occurring among certain property developers,” it said in a statement to the Hong Kong stock exchange.