China Vanke said its largest shareholder is providing a RMB 2.36 billion ($339 million) loan to help it meet near-term debt repayment obligations, reports Caixin. This comes as it struggles to manage ongoing debts amid China’s prolonged property slump.
State-owned Shenzhen Metro Group is providing the three-year loan at an interest rate of 2.34%, according to a stock exchange filing on Tuesday. The railway operator has granted Vanke the option to repay early or negotiate further extensions if it faces continued liquidity difficulties.
On Tuesday, Vanke said it had secured bondholder approval to extend the maturities of two medium-term notes originally due in late 2025. After bondholders rejected initial proposals for a full one-year rollover without upfront repayment, Vanke revised its offers. The approved deals require the developer to pay 40% of the principal in cash, along with accrued interest, by late January, while extending the remaining 60% for one year.