Vanke offers bond put option as rating agencies take action

Vanke Co., Ltd. announced no adjustment to the 3.98% coupon rate for its "21 Vanke 02" bonds for the remaining two years of their term. Bondholders have a put option, allowing them to sell all or part of their bonds back to Vanke at a price of CNY 100 per unit during the registration period from December 9 to December 15, 2025. The proceeds will be disbursed on January 22, 2026. The company will not resell the repurchased bonds.

This announcement follows recent credit rating adjustments for Vanke. Fitch Ratings downgraded Vanke Co., Ltd.'s long-term foreign and local currency Issuer Default Ratings (IDRs) to "CCC-" and placed them on Rating Watch Negative. The ratings for Vanke Real Estate (Hong Kong) Co., Ltd. were also adjusted, with senior unsecured ratings downgraded to "CC" from "CCC-" and a recovery rating revision to "RR5" from "RR4." This was triggered by Vanke's plan to discuss a bond extension for its CNY 2 billion onshore bonds due December 15, 2025.

Additionally, United Ratings and China Chengxin International Credit Rating Co., Ltd. (CCXI) have ceased their credit ratings for Vanke and its various bond issues, including the "21 Vanke 02" bond. The company indicated that there are currently no delays in interest or principal payments on its outstanding bonds.