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Vanke Signs Framework Agreement with Shenzhen Metro for Loan Facility
November 3, 2025
China Vanke signed a framework agreement with its largest shareholder Shenzhen Metro Group to receive a loan facility of up to RMB 22bn ($3.1bn), as per a filing.
- Purpose: The funds are earmarked to repay principal and interest on Vanke’s publicly issued bonds and other designated loan interests approved by Shenzhen Metro. This provides targeted support for the company’s debt maturity management.
- Term: The overall loan quota is available from the beginning of 2025 until Vanke’s 2025 Annual General Meeting expected before 30 June 2026. Individual drawdowns under the agreement will have an initial term not exceeding three years, with a possibility for extension upon mutual consent.
- Interest Rate: The interest rate on the loan is set at the prevailing 1Y Loan Prime Rate (LPR) minus 66bp, (~2.34% at the time of disclosure). This rate is lower than Vanke’s typical commercial bank loans.
- Collateral Requirement: Unlike previous unsecured loans from Shenzhen Metro, the new framework requires that Vanke, or its subsidiaries, must provide collateral to secure the loan. This includes real estate, fixed assets, inventory, or equity.
- Utilization: The framework includes eight tranches of unsecured loans amounting to RMB 19.7bn ($2.8bn) previously disbursed to Vanke. This, it can draw upon another loan not exceeeding RMB 2.2bn ($310mn) under the facility.
The developer said that the framework was the most effective way to raise funds, considering the lower interest costs. The framework is subject to approval by Vanke’s shareholders. The company emphasized that this transaction reflects the strong support from its largest shareholder and will help strengthen its financial stability without harming the interests of minority investors. The update is significant as Vanke posted a loss of RMB 16.1bn ($2.3bn) in the three months ended September 30, roughly doubling its loss from a year earlier.
Vanke’s 3.5% 2029s fell by 10 points to trade at under 50 cents on the dollar.
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