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China Vanke has asked investors for a one-year extension on a 3.7 billion yuan (around USD 525 million) onshore bond that was set to mature later this month. The proposal keeps the interest rate unchanged at 3% during the additional year. Bondholders may offer their own suggestions before the vote takes place. This request follows another extension proposal for a 2 billion yuan onshore bond due the following week, with voting already underway. The move highlights continued liquidity pressure on Vanke as China's housing market remains slow.
China Vanke has sought approval from bondholders to extend repayment on a second onshore bond as the developer continues facing tight cash conditions in a slow property market. According to people familiar with the discussions, Vanke is asking for a one-year extension on a 3.7 billion yuan note, equal to about USD 525 million, which was originally scheduled to mature toward the end of this month. The company has proposed keeping the 3% interest rate unchanged through the extension period. Advertisement
People aware of the matter said bondholders have been allowed to put forward additional suggestions before the voting process begins. A meeting for this bond is planned for later this month. The company has not issued a public statement on the matter, and details were first reported through market sources. Bloomberg had earlier shared information on the proposal.
This request comes during a period when Vanke is also waiting for the outcome of another bond vote. Creditors are currently voting on the developer's plan to delay repayment of a separate 2 billion yuan onshore bond that is due the following week. That meeting began earlier in the week and is expected to conclude by the end of the week. Vanke has sought a one-year extension for that note as well.
Vanke was once considered China's largest homebuilder by sales and was often used as a sector benchmark due to its stronger financial record compared with several other major developers. The current situation shows how even established companies are navigating repayment pressures amid a market downturn that has lasted more than two years. Sales declines, limited financing channels, and slower homebuyer sentiment have continued to affect the sector.
Source Reuters
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