Shenzhen Metro to lend China Vanke 1.666 bn yuan

China Vanke Co. Ltd. announced a board resolution approving a shareholder's loan of up to 1,666 million yuan from its substantial shareholder, Shenzhen Metro Group Co., Ltd. The loan, not exceeding three years in term, is intended to repay the principal and accrued interest on bonds previously issued by China Vanke in the open market. The last permitted drawdown date for the loan is November 13, 2025.

The interest rate for the loan will be based on the 1-year Loan Prime Rate (LPR) published by the National Interbank Funding Centre, with a floating point of minus 66 basis points, equating to 2.34% as of the announcement date. This rate is noted as being lower than the company’s current loan rates from financial institutions. The loan will bear interest on a daily basis, settled quarterly, with repayments initially semi-annual at 0.5% of the drawdown amount.

This transaction constitutes a connected transaction under Hong Kong Listing Rules, given Shenzhen Metro Group's 27.18% stake in China Vanke. However, the loan is fully exempt from shareholder approvals, annual reviews, and disclosure requirements as it is conducted on ordinary commercial terms or better and is not secured by the listed issuer group’s assets.