Vanke secures bond grace period extension, provides new subsidiary guarantees

China Vanke announced that the second bondholder meeting for its 2022 fourth tranche medium-term notes (22 Vanke MTN004) has approved an extension of the grace period. While the proposal to adjust principal and interest payment arrangements was not approved, the grace period for payments has been extended from 5 to 30 trading days, with the new deadline being January 28, 2026. This extension allows Vanke to avoid default if full payment is made within this period, maintaining the original payment hierarchy.

Concurrently, Vanke has issued new guarantees for its subsidiaries. Its holding subsidiary, Zhejiang Vanke Enterprise, will provide a guarantee of up to 259 million yuan for Zhejiang Vanke Nandu Real Estate's related liabilities. Furthermore, Vanke's subsidiary, Shenzhen Vanke Development, has secured an extended investment term of one year for 3.88 bn yuan in financing from Taiping Asset Management, with Vanke continuing to provide a joint liability guarantee and Shenzhen Vanke Changwang Real Estate offering collateral.

These guarantees align with Vanke's 2024 annual general meeting authorization, allowing new guarantees up to 150 bn yuan. Following these transactions, Vanke's total external guarantees, including those from its holding subsidiaries, will amount to 94.136 bn yuan, representing 46.45% of the company's net assets as of the end of 2024. Vanke affirms these actions support operational needs and pose manageable risks, with no overdue guarantees reported.