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Vanke’s Bondholders Pushback On Debt Extension Plan; COGARD Gets $13bn Bond Issue Approval
December 4, 2025
At least three holders of China Vanke’s local bond maturing this month have told the developer they will oppose its proposal to delay repayment by one year, as per sources. Vanke representatives have been calling investors to gauge support and indicated there is little room to sweeten the terms, as the firm must conserve cash to finish and deliver pre-sold homes. They also noted that most holders are Chinese banks. The extension request is intended to give Vanke breathing space ahead of a potential wider restructuring. The company faces RMB 13.4bn ($1.9bn) of maturities or puttable bonds through mid-2026, adding to liquidity pressure. Vanke plans to review the extension proposal with holders on December 10, the passage of which requires a 90% approval. Creditors were hoping for upfront or interim interest payments, but Vanke is proposing to delay both principal and 3% coupon for one year. Vanke’s dollar bonds are trading at deeply distressed levels of 20 cents on the dollar.
Separately, prominent developer, Country Garden (COGARD) won approval of its shareholders to issue about $13bn in mandatory convertible bonds, a key step in its effort to restructure more than $14bn in offshore debt. The plan involves issuing three tranches of convertible bonds, which will ultimately convert into equity and dilute existing shareholders. Most creditors have agreed to participate, though some prefer separate negotiations. As of June, COGARD carried RMB 885.4bn ($125bn) in total debt and has already defaulted on RMB 186.1bn ($26.4bn) debt, including domestic bonds. The restructuring process is expected to be lengthy due to its scale and complexity. The company has been in deep financial distress since late-2023 after it had formally defaulted on a dollar bond. COGARD’s dollar bonds continue to trade at deeply distressed levels of 9-10 cents on the dollar.
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