Vanke's latest 2 billion yuan medium-term note extension will pay out 40% of principal and interest tomorrow

Viewpoint Network News: On May 11, Vanke Enterprise Co., Ltd. announced the disclosure of the repayment arrangement for the principal and interest of the second tranche of medium-term notes in 2023.

The announcement shows that this tranche of notes is abbreviated as “23 Vanke MTN002,” with a total issuance amount of 2 billion yuan, a term of 3 years, and an interest rate of 3.10% during this interest period.

According to the repayment arrangement, the total amount payable for principal and interest this period is 864.22 million yuan, including 40% principal and related interest. The principal and interest payment date is set for May 12, 2026.

On May 9, Vanke released an announcement regarding the resolution of the first holder meeting for the 2023 second tranche of medium-term notes in 2026, indicating that the first holder meeting for the 2023 second tranche of medium-term notes in 2026 was held on May 6.

The meeting reviewed “Proposal 1: Adjustment of the principal and interest repayment arrangement for this tranche of medium-term notes (Special Proposal).”

A total of 37 holders or holder agents of “23 Vanke MTN002” who agreed to this proposal, with effective voting rights amounting to 19,990,000, accounting for 99.95% of the total voting rights; 0 holders or holder agents opposed this proposal, with effective voting rights of 0, accounting for 0.00%; all other voting rights abstained.

According to the “Interbank Bond Market Non-Financial Corporate Debt Financing Instruments Holders’ Meeting Rules” and the provisions of this bond issuance document, this proposal can only take effect if approved by holders holding more than 90/100 of the total voting rights. Therefore, this proposal is effective for the “23 Vanke MTN002” holder meeting.

Specifically, the approved extension plan for “23 Vanke MTN002” includes four aspects: First, fixed repayment arrangement: for each holder account that agrees to the vote, a payment of 100k yuan will be made.

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 new interest repayment adjustment and payment arrangements: on the original maturity date, the payable interest of 62 million yuan will be paid on time, and during the extension period, the remaining 60% of the principal will accrue interest at a 3.1% coupon rate, to be paid together with the principal after one year.

Fourth, credit enhancement: Vanke will provide a guarantee by pledging receivables from the project companies Kunming Wanyi Real Estate Development Co., Ltd. (hereinafter “Kunming Wanyi”) and Wuhan Wanyun Real Estate Co., Ltd. (hereinafter “Wuhan Wanyun”) as collateral to support the unpaid principal and interest of this tranche of medium-term notes.

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