Vanke secures $359m loan from Shenzhen Metro

China Vanke Co. (HKEX: 2202) has entered into a connected transaction with its substantial shareholder, Shenzhen Metro Group, securing a loan of up to RMB2.8 billion (approximately $359 million USD). The agreement, finalized on February 10, 2025, will see Vanke provide asset collateral valued at no more than RMB 4 billion as security. Additionally, Vanke will pledge 211,530,417 shares of Onewo Inc., calculated at an average market price of HK$20.54 per share, as part of the asset collateral. The loan carries an interest rate of one-year LPR minus 76 basis points, currently at 2.34%, and will be used to repay existing debts. Shenzhen Metro Group holds approximately 27.18% of Vanke's issued share capital, making this a connected transaction subject to reporting and announcement requirements but exempt from circular and independent shareholder approval.