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An increase of more than 200%!90 billion debt restructuring was successful, and Sunac successfully "went ashore"?

An increase of more than 200%!90 billion debt restructuring was successful, and Sunac successfully "went ashore"?

Sun Hongbin can finally breathe a sigh of relief.

On the evening of October 20, Sunac China issued an announcement, announcing that the conditions for the company's overseas debt restructuring had been met and officially took effect on the same day.

This means that Sunac's overseas debt restructuring has been completed.

It is reported that Sunac's debt restructuring will resolve its debt risk of about 90 billion yuan.

According to the information, after the completion of the restructuring, the existing debts of the creditors will be replaced with new notes, mandatory convertible bonds, convertible bonds, and shares of Sunac Services, with a consideration of US$5.7 billion, US$2.75 billion, and US$1 billion, respectively, totaling about US$9.454 billion.

An increase of more than 200%!90 billion debt restructuring was successful, and Sunac successfully "went ashore"?

At the same time, the existing shares of Sunac Services, which account for 14.7% of the total shares of Sunac Services, have been transferred to the accounts of the relevant scheme creditors, and the relevant creditors have also discharged and exempted the relevant claims for approximately US$775 million. After the completion of the transfer, Sunac China's shareholding in Sunac Services decreased to 49.7%, and after the completion of the transfer, Sunac Services will remain a subsidiary of Sunac China.

Rongji shows that the total of the two is about 10.225 billion US dollars.

After the completion of this restructuring, Sunac has also become the first leading real estate company to complete domestic and overseas debts.

Kanjian Finance believes that the completion of the restructuring is of great significance to Sunac, and it also provides a certain reference for all real estate companies.

First of all, from the operational aspect, because of the liquidity pressure, Sunac's operation has brought great risks and problems, so Sunac can focus on ensuring the delivery of the building and making every effort to collect the money, eliminating the operational risks caused by debt problems. It is worth noting that as of the middle of this year, the value of Sunac's land reserves is about 1.39 trillion yuan, of which more than 70% are located in first- and second-tier cities, which also greatly improves Sunac's ability to resist risks.

According to relevant reports, at the beginning of September, Sunac No. 1 Hospital, which is adjacent to Chaoyang Park in Beijing, opened, with 169 sets of on-site subscriptions, with an average price of more than 30 million, and a total subscription amount of about 5.62 billion yuan on the same day. In addition, Shanghai Dongjiadu, Huangpu Yalong, Beijing Sunac No. 1 Hospital, Shanghai Future Financial City, these projects have an unsold value of about 150 billion yuan, with huge potential.

An increase of more than 200%!90 billion debt restructuring was successful, and Sunac successfully "went ashore"?

Secondly, the completion of the debt means that Sunac China will not have rigid repayment pressure in the next two to three years, and Sunac can also take this opportunity to take a breather, stabilize the fundamentals and cash flow, and strive to get the company back on track. In addition, in addition to the external environment, Sun Hongbin himself and the efforts of the management are also important factors in the success of Sunac's ability to reduce debt.

So, after the successful debt reduction, what are the main problems of Sunac?

First, it is to work hard to resume work and production, for some projects that have been suspended before, we must start construction as soon as possible to ensure the timely delivery of the sold properties, stabilize the confidence of buyers, create a responsible image for the outside world, and let buyers buy houses with confidence;

Second, revitalize some stagnant projects as soon as possible, speed up the collection of payments, and strive to make the company's cash flow return to positive, so that the company's operation can achieve a positive cycle.

Third, the market's financing capacity should be restored as soon as possible. Judging from the current situation of real estate enterprises, although the situation of most enterprises has been improved, the channel of market financing is still not smooth, and the speed of relying on project payment is relatively slow, so if market financing can be resumed, the speed of Sunac out of the "predicament" will be greatly accelerated.

On the whole, Sunac has taken the first successful step in this debt. Since then, with the delivery of projects in some first- and second-tier cities, the probability of Sunac getting out of the bottom will be greatly improved. However, it is worth noting that the current core is still to ensure the delivery of buildings, which means that Sunac's cash flow is still relatively tight. Therefore, we believe that we need to continue to pay attention to Sunac's future delivery data and cash flow.

Affected by the success of Sunac's bonds, on November 21, it led the domestic real estate stock sector to rise sharply, with Sunac rising by more than 26% intraday and closing down to 12.02%. Statistics show that since the end of August, Sunac China has risen by more than 200%.

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