China Vanke says Shenzhen Metro to provide co with up to 1.1 bln yuan loans

China Vanke Co Ltd, one of China's largest property developers, has announced that its largest shareholder, Shenzhen Metro Group, will provide the company with new loan facility of 2.36 billion yuan ($339 million) to support its liquidity needs. The loan, which has a term of 36 months and carries an interest rate of 2.34 percent, is intended to assist Vanke in repaying principal and interest on its outstanding bonds.

The loan facility aligns with the company’s recent efforts to secure extensions on two of its medium-term notes, "22 Vanke MTN004" and "22 Vanke MTN005," which were approved by bondholders. As part of the agreement, Vanke is required to immediately repay 40 percent of the principal and interest due on these notes, amounting to approximately 2.46 billion yuan.

This latest financial support from Shenzhen Metro follows a broader pattern of assistance from the company’s state-backed majority shareholder, who already owns approximately one-third of Vanke’s shares. While the loan provides temporary relief, analysts caution that Vanke’s significant cash flow requirements continue to strain its largest shareholder’s resources. The company faces a total of 12 billion yuan in onshore liabilities maturing this year, with its next major repayment due on 23 April.