China Vanke has proposed a one-year extension on its RMB 2 billion ($282 million) mid-term note due in December, marking its first public debt deferral, reports Caixin. The moves signals mounting financial strain even on one of China’s historically stronger state-backed developers.
Caixin says that according to documents it has seen, Vanke’s “22 Vanke MTN004” bond would be pushed to mature on Dec 15, 2026, with the coupon kept at 3%. All accrued and future interest would be repaid in full at maturity—with no compounding and no upfront cash payment.
The three-year note, issued in December 2022 through underwriters Shanghai Pudong Development Bank and Bank of China, trades in China’s interbank market and is held mainly by institutions. Investors said the proposed terms are less generous than those offered by other distressed developers, which typically include partial interest or principal payments during the extension period.