Sunac China finalizes offshore debt restructuring, issues new shares to Chiyu

Sunac China Holdings Limited announced an expected effective date of December 23, 2025, for its holistic offshore debt restructuring, aiming to discharge approximately $9.6 bn of existing debt. Concurrently, the company entered into a restructuring deed with Chiyu for an outstanding loan of HK$858m. This Chiyu Restructuring Deed will restructure 35% of the principal (HK$300.3m) into a ten-year extended loan and discharge the remaining amount through the issuance of new shares.

Under the Chiyu Restructuring Deed, Sunac will allot and issue 279,212,879 Chiyu Settlement Shares at an issue price of HK$3.85 per share. This issue price represents a premium of approximately 196.15% over the closing price on December 16, 2025. These shares will constitute approximately 2.38% of the company's enlarged issued share capital and will be issued under the general mandate, not requiring further shareholder approval.

The Chiyu transaction is conditional on various factors, including the listing approval of the new shares on the Stock Exchange. This move aims to comprehensively address Sunac's debt risks, bolstering its creditworthiness and supporting long-term business operations.