Vanke announces new extension plan for two bonds totaling 5.7 billion yuan: pledges project company receivables to enhance credit and seeks to extend the grace period to 90 trading days.

On January 15, the official website of the China Interbank Market Dealers Association disclosed two announcements. Shanghai Pudong Development Bank Co., Ltd. and Bank of Communications Co., Ltd., respectively as conveners, issued summaries of motions for the first holders’ meetings in 2026 regarding Vanke Enterprise Co., Ltd.’s 2022 fourth tranche "22 Vanke MTN004" and fifth tranche "22 Vanke MTN005" medium-term notes. The two bonds have a combined scale of 5.7 billion yuan.

This time, both bondholders' meetings have reset four special motions, including principal extension, grace period extension, partial principal and interest early repayment, and provision of credit enhancement measures. All motions must be approved by holders representing more than 90% voting rights to take effect. The voting deadline is January 26, 2026.

Public information shows that the balance of the "22 Vanke MTN004" bond is 2 billion yuan, with a coupon rate of 3.00%. The original maturity date is December 15, 2025, with interest payable of 60 million yuan. The "22 Vanke MTN005" bond has a remaining balance of 3.7 billion yuan, also at 3.00% coupon, with an original maturity date of December 28, 2025, and interest payable of 111 million yuan. Both bonds are seeking extension of repayment.

According to the latest disclosed motions, the first motion for both bonds is to adjust the payment arrangements for principal and interest of the medium-term notes. The motion proposes to adjust both medium-term notes’ principal and interest payment, while providing a pledge of receivables from project companies as credit enhancement.

Specifically, the principal repayment date for "22 Vanke MTN004" will be extended by 12 months to December 15, 2026; "22 Vanke MTN005" extended to December 28, 2026. During the extension, the coupon rate stays at 3.00%, and newly accrued interest is paid together with the principal.

For unpaid interest, the 60 million yuan for "22 Vanke MTN004" must be paid by January 28, 2026; the 111 million yuan for "22 Vanke MTN005" must be paid by February 10, 2026. During the grace period, unpaid principal accrues interest at 3.00%; unpaid interest does not compound.

As a credit enhancement guarantee, Vanke commits to pledge receivables from its project companies as credit enhancement measures. "22 Vanke MTN004" involves Shenzhen Rongxing Real Estate Development Co., Ltd., Langfang Wanheng Shengye Real Estate Development Co., Ltd., and Beijing Youtai Real Estate Development Co., Ltd.; "22 Vanke MTN005" involves Shenzhen Zhongwan Huakai Industrial Investment Co., Ltd., Xi’an Yiheyuan Industrial Co., Ltd., and Shenzhen Wanxin Future City Manufacturing Co., Ltd. Additionally, the guarantee registration must be completed within 60 business days after the motion passes. Otherwise, creditors may declare principal and interest immediately due.

Motion two is to extend the grace period of the medium-term notes. The motion proposes to extend the grace period for principal and interest payment from 30 trading days to 90 trading days. For "22 Vanke MTN004", the grace period expires on April 29, 2026; for "22 Vanke MTN005", the grace period extends to May 14, 2026. According to the terms, if Vanke repays in full, eliminates default events, or gets a waiver from the holders' meeting within the grace period, it will not constitute a default, and there will be no penalty interest, default charges, or overdue interest during the grace period. Unpaid principal during the grace period continues to accrue interest at the coupon rate, and interest will be paid together with principal when actually paid, with no additional interest on unpaid interest.

Motion three mainly proposes fixed payments and adjustments to principal and interest payments, alongside credit enhancement measures and repayment sequence commitments. The fixed payment arrangement stipulates: If this motion is approved, Vanke will pay 100,000 yuan on January 28, 2026, to each holder participating in the meeting and voting at least in favor of motion three or four. This portion of principal will not accrue interest from the original maturity date until January 28, 2026; if the account’s principal balance changes from the date of debt registration, the lower amount applies.

On this basis, the principal payment and arrangement are also adjusted. For "22 Vanke MTN004," 40% of the note's principal (after deducting the fixed payout portion) will be paid on January 28, 2026; the remaining 60% will be extended to December 15, 2026. For "22 Vanke MTN005," the same proportion is paid on January 28, 2026, with the remaining 60% principal extended to December 28, 2026. The interest accrued for unpaid interest and the 40% principal will be paid by January 28. Extended portions maintain a 3.00% rate.

Additionally, credit enhancement measures mirror those in motion one. Vanke also commits that for subsequent public market credit bond repayments, these medium-term notes’ repayment ratio will not be worse than any bonds maturing later.

Motion four proposes extension of the medium-term notes’ grace period and repayment of part of principal and interest. This motion proposes extending the original grace period of 30 trading days to 90 trading days and sets two payment arrangements: first, fixed payment consistent with motion three; second, partial principal and interest repayment, in which payable interest on both bonds is paid on January 28, 2026, and 5% of the principal balance (after deducting the fixed payment portion) is also paid that day. This part of principal will not accrue interest; unpaid principal during the grace period accrues interest at 3.00%.

During the grace period, if Vanke fully repays or secures a waiver, it does not constitute default. Vanke also commits to maintain the priority of this tranche of medium-term notes in the repayment order, ensuring they are not subordinate to credit bonds maturing later.

According to the announcement, the "22 Vanke MTN004" bondholders’ meeting will be held at 10:00 on January 21, 2026; the "22 Vanke MTN005" bondholders’ meeting will be held at 15:00 the same day. The voting deadline for both meetings is January 26.

Source: The Paper

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