Vanke's "formulaic" debt management: 10.8 billion yuan in domestic bonds successfully extended

Guandian.com A bill under Vanke’s banner that was about to mature has also gained the creditor’s approval and successfully extended its term.

It is understood that the Agricultural Bank of China, as the convenor, held the second mid-term note holder meeting for Vanke Enterprise Co., Ltd.’s 2023 issuance (referred to as “23 Vanke MTN002”) in 2026 on May 6. The meeting only had one proposal: an amendment to the repayment arrangement of the principal and interest for this mid-term note (a special resolution).

Data shows that “23 Vanke MTN002” has an issuance scale of 2 billion yuan, with a coupon rate of 3.1%, an interest start date of May 12, 2023, a three-year term, and a maturity date of May 12, 2026. After voting at the meeting, the new repayment date was postponed by one year.

Like previous corporate bonds, Vanke’s approved extension plan this time also follows the “fixed 100k yuan repayment + 40% of principal paid immediately + 60% of principal extended for one year + credit enhancement measures” formula, forming a “standardized” debt restructuring path.

Specifically, the extension plan approved for “23 Vanke MTN002” includes four aspects: first, fixed repayment arrangement: a 100k yuan payout to each holder account that votes in favor.

Second, adjustment of principal repayment and payment arrangements: on the original maturity date, 40% of the principal after deducting the fixed repayment will be paid, with the remaining 60% extended for one year to May 12, 2027.

Third, unpaid and newly accrued interest repayment adjustment and arrangement: on the original maturity date, the 62 million yuan interest payable will be paid on time; during the extension period, the remaining 60% of the principal will accrue interest at the coupon rate of 3.1%, and will be paid together with the principal after one year.

Fourth, providing credit enhancement: Vanke provides a pledge guarantee based on its receivables from Kunming Wanyi Real Estate Development Co., Ltd. (“Kunming Wanyi”) and Wuhan Wanyun Real Estate Co., Ltd. (“Wuhan Wanyun”) to support the unpaid principal and interest of this mid-term note.

Data shows that Kunming Wanyi is jointly held by Vanke (67%) and Yunnan Kunze Real Estate Co., Ltd. (33%). In 2020, the company acquired six plots of land within the Cultural and Ecological New City in Guandu District, Kunming, totaling about 281.89 acres, at a total price of 230k yuan. It later acquired several surrounding plots, consolidating into the Vanke Park City Mountain River Wanli project.

However, the development of this project has faced difficulties. On February 12, 2025, one of the project plots, KCGD2020-12-A1-1, was reported as idle land by the Kunming Guandu District Natural Resources Bureau for not starting construction on time.

Wuhan Wanyun is jointly held by Vanke and China Overseas Land & Investment, with 80% and 20% stakes respectively. Its core project is Vanke Yun City, located at Baitan Road, Baisha District, Wuhan. The land was acquired by Wuhan Vanke in 2017 for 3.8654 billion yuan, covering 119k square meters with a planned construction area of 426k square meters. By the end of 2025, about 328.7k square meters had been completed.

Notably, the extension plan for “21 Vanke 02” approved in January also included a pledge guarantee based on receivables from Wuhan Wanyun.

As of now, five Vanke-related corporate bonds have been extended, with a total issuance scale of 10.8 billion yuan, using the same extension method. According to the extension plan, “23 Vanke MTN002” needs to pay approximately 865 million yuan for 40% of the principal, interest, and fixed payments combined. The five bonds together require about 4.65 billion yuan.

By the end of 2025, Vanke’s consolidated balance sheet shows about 67.24 billion yuan in cash and equivalents, a decrease of 1 billion yuan from the beginning of the year; total interest-bearing liabilities amount to 356.05 billion yuan; and the asset-liability ratio is 77.1%.

Additionally, on May 8, media reports citing insiders revealed that Vanke informed some holders of its 2027 dollar bonds that the company had begun remitting funds to pay the interest, with the funds already in place, though the specific source of funds was not disclosed.

Currently, Vanke still has two outstanding dollar bonds, with a total issuance of 1.3 billion USD, both with 10-year maturities, due on November 9, 2027, and November 12, 2029, respectively.

Disclaimer: The content and data in this article are compiled by Guandian based on publicly available information and do not constitute investment advice. Please verify before use.

(Edited by: Dong Pingping)

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