Sunac China plans to issue 754 million shares to SPV to raise 5.6 billion yuan for domestic debt repayment stock options

According to the announcement from Sunac China (01918), as previously stated, after the domestic debt restructuring plan was reviewed and approved by the relevant domestic bondholders' meeting, Sunac Real Estate will arrange for domestic bondholders to choose among the restructuring options for their held domestic bonds, including bond repurchase (i.e., cash tender offer), equity economic benefit rights payment, and debt-to-equity swaps.

Sunac Real Estate has repurchased approximately RMB 8 billion of domestic bonds with a total amount of approximately RMB 40 billion according to the bond repurchase option arrangement in April 2025. Currently, regarding the equity option, according to the terms of the domestic debt restructuring, each RMB 100 face value of domestic bonds choosing the equity option can obtain the net proceeds rights from the disposal of 13.5 shares of the company.

To facilitate the orderly implementation of the equity option in the domestic debt restructuring, on July 3, 2025, the company entered into a subscription agreement with the special purpose company Bright Bene (BVI) Investment Limited, under which the special purpose company conditionally agreed to subscribe, and the company conditionally agreed to allocate and issue a total of 754 million shares. The net proceeds from the disposal of these shares will be used to repay the relevant domestic bonds held by bondholders who choose the equity option, totaling approximately RMB 5.6 billion.

The company will apply to the Stock Exchange for approval to list and trade the subscribed shares on the Stock Exchange