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Bond Market News
Vanke’s Local Bondholders Set to Vote on Extension Plan; Offshore Holders Approached by Advisor
December 10, 2025
China Vanke creditors are set to meet today to vote on a local bond’s extension plan aimed at avoiding a default. Holders of at least 90% of its RMB 2bn ($280mn) onshore note due December 15 are required to approve the proposal. Vanke has indicated a willingness to pay some interest on the note, in addition to the original plan for a 12-month extension. Holders will also be able to vote on two other proposals with more generous terms requiring Vanke to pay interest on time and add some credit enhancements, as previously reported.
Meanwhile, offshore bondholders have been approached by advisor Houlihan Lokey, to potentially form an ad hoc committee and act as their main representative in restructuring talks. In the event of a possible Vanke offshore bond default, the noteholders’ negotiating position is expected to come from their ability to enforce and claim against the keepwell provider China Vanke. Alternatively, they could negotiate on potentially liquidating the developer’s Hong Kong-based unit that is the issuer of its dollar bonds. A keepwell provision, however, as seen in historical cases, does not guarantee repayment from the parent.
Vanke’s dollar bonds continue to trade at deeply distressed levels of 20 cents on the dollar.
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