China Vanke Secures Bondholder Nod in Critical Debt Deal
Listen to the full version
China Vanke Co. Ltd. has secured crucial approval from bondholders to postpone repayment of a major onshore bond, marking a key milestone in its urgent push to weather a deepening liquidity crunch and avoid default.
CITIC Securities Co. Ltd., the bond’s lead underwriter, disclosed Wednesday that holders of the “21 Vanke 02” bond had approved a supplementary proposal to delay full repayment. Issued on Jan. 22, 2021, the bond has a 1.1 billion yuan ($158 million) outstanding balance and carries a 3.98% coupon. Although its official maturity is in 2028, the bond includes a put option exercisable on Jan. 22, 2026 that would have compelled Vanke to repurchase the notes.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- China Vanke secured bondholders' approval to delay repayment of a 1.1 billion yuan bond, easing default risk.
- Vanke must raise over 2.7 billion yuan by January's end for upfront obligations and has proposed similar restructuring for two other bonds, totaling 6.7 billion yuan.
- Shenzhen’s government and state entities have intervened, and further state support is seen as likely to address Vanke’s liquidity crunch.
- China Vanke Co. Ltd.
- China Vanke Co. Ltd. (万科企业股份有限公司) is a state-backed Chinese developer facing a liquidity crunch. It recently secured bondholder approval to postpone repayment of a major onshore bond, the "21 Vanke 02," and is seeking similar restructuring for two other debt instruments. To meet obligations, Vanke needs to raise over 2.7 billion yuan by the end of January. The Shenzhen government, its largest shareholder, is reportedly intervening to provide support.
- CITIC Securities Co. Ltd.
- CITIC Securities Co. Ltd. is the lead underwriter for the "21 Vanke 02" bond. They disclosed that bondholders approved a supplementary proposal to delay full repayment of this bond, which has a 1.1 billion yuan outstanding balance.
- Shenzhen Metro Group Co. Ltd.
- Shenzhen Metro Group Co. Ltd. is the largest shareholder of China Vanke Co. Ltd. The Shenzhen government, which controls Shenzhen Metro Group, intervened to assist Vanke in addressing its liquidity challenges. State-affiliated entities reportedly took over daily operations at Vanke in January 2025.
- Jan. 22, 2021：
- China Vanke issued the '21 Vanke 02' bond.
- January 2025 (Lunar New Year holidays)：
- State-affiliated entities reportedly assumed day-to-day operations at Vanke following intervention by the Shenzhen government.
- Jan. 15, 2026：
- Vanke submitted restructuring proposals for '22 Vanke MTN004' and '22 Vanke MTN005'.
- Jan. 21, 2026：
- Vanke to pay all accrued interest due before this date as part of the bond restructuring plan.
- Jan. 22, 2026：
- Put option on the '21 Vanke 02' bond would have compelled Vanke to repurchase the notes; all accrued interest before this date to be paid under the restructuring plan.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新