HONG KONG (Reuters) – Property developer Sunac China said on Thursday it will hold a meeting next week with investors to approve an additional sell back date next year for a 4 billion yuan ($633.08 million) puttable bond, which analysts said could ease some liquidity pressure for the firm.
China’s third largest developer by sales proposed to give investors the option to sell back the onshore bond due 2024 next year, on top of the existing option to sell back this year on April 1, it said in a filing.
The voting will take place on March 8-9.
If approved, Sunac would also have the extra option next year to adjust the coupon rate of the bond.
A source with knowledge of the matter told Reuters earlier this week the company has enough funds in place to redeem the bond on April 1, but analysts said the new put option proposal may allow some investors to defer their sell back decision, relieving some liquidity pressure for Sunac in the short term.
Shares of Sunac rose 2.9% on Thursday, versus a 2.1% gain in Hang Seng Mainland Properties Index.
Its shares fell nearly 40% in the past two weeks on concerns over its liquidity and debt repayment issues.
In a separate filing on Thursday, the developer said its operation has been normal and there is no significant change in its repayment capability.
($1 = 6.3183 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Simon Cameron-Moore)
