Sunac China issues new shares for debt restructuring

Sunac China Holdings is proceeding with its onshore debt restructuring plan by issuing 754,468,943 new shares to a Special Purpose Vehicle, as outlined in announcements from November 2024 and January 2025. This move supports the equity option of the restructuring, which allows onshore bondholders to receive proceeds from the disposal of these shares. The bondholders electing this option will receive proceeds equivalent to the disposal of 13.5 company shares for every RMB100 face value of onshore bonds, with approximately RMB5.6 billion in aggregate to be repaid to the holders of the Onshore Bonds. The shares represent approximately 7.04% of the existing issued share capital. The proceeds from the sale of these shares will be used to repay relevant onshore bonds. The listing of, and permission to deal in, all the Subscription Shares is subject to approval from the Listing Committee of the Stock Exchange. The company believes this will relieve pressure on its liquidity, improve its financial position, and contribute to long-term business recovery.