China Vanke secures US$383 million lifeline from top shareholder
Shenzhen Metro Group, which holds a 27.2 per cent stake, signed a three-year agreement with Vanke to provide secured loans of up to 2.8 billion yuan (US$383 million), according to a filing to the Hong Kong stock exchange late on Monday.
Vanke will provide assets of up to 4 billion yuan as collateral to Shenzhen Metro Group via an 18 per cent stake transfer in its property management unit Onewo.
The loan facility, with a floating rate of 76 basis points below the one-year loan prime rate, or 2.34 per cent as of Monday, would be used to repay and settle Vanke's outstanding debts, according to the filing. The loans would be repaid on a quarterly basis. China Vanke's residential project in Hangzhou, east Zhejiang province, is seen under construction in this file photo from May 2024. Photo: AFP
The arrangement 'fully reflects Shenzhen Metro Group's support for the company', Vanke said, adding that it 'would be the most effective way to raise funds for the group'.
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