Vanke secures 2.36b yuan loan support from Shenzhen Metro
China Vanke Co Ltd, one of the country's largest property developers, announced on Tuesday night that it had secured fresh credit support from its largest shareholder, Shenzhen Metro, with a loan facility worth up to 2.36 billion yuan ($333 million), extended to the company.
On the same day, the extension proposals for its medium-term notes "22 Vanke MTN004" and "22 Vanke MTN005" were approved, Vanke said in a notice.
As part of the agreement, Vanke is required to immediately repay 40 percent of the principal and interest due on these notes, amounting to about 2.461 billion yuan, nearly matching the value of this latest loan provided by Shenzhen Metro.
The loan has a term of 36 months and carries an interest rate of 2.34 percent. Shenzhen Metro also reserves the right to require Vanke to provide collateral for this loan.
"The interest rate on this shareholder loan follows market-based principles and is in line with the rates Vanke currently obtains from financial institutions. This arrangement fully demonstrates the strong support of our major shareholder," Vanke added.
