China Vanke unveils fresh proposal to extend US$366 million bond after 3 failed bids

Distressed mainland developer China Vanke has unveiled a revised bond extension proposal, seeking approval from creditors after its initial three payment extension bids were rejected, a development that has fuelled concerns about the crisis-hit property sector.

Holders of the 2 billion yuan (US$366 million) bond – which matured on Monday – would vote on the revised plan from Thursday to Monday, according to a filing to the Shanghai Clearing House on Tuesday.

The proposal needs to secure the approval of bondholders representing over 90 per cent of the total voting rights to take effect.

Under the revamped terms, Vanke proposed extending the bond’s maturity by 12 months to December 15, 2026, while keeping the coupon unchanged at 3 per cent. The 60 million yuan interest that was due on December 15 would be settled by December 22, according to a statement from Shanghai Pudong Development Bank, the bond’s community manager, on Tuesday night.

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While the revised plan still contains three proposals from the first meeting, only the second one relates to the principal and interest repayment terms.

Additionally, Vanke has floated another proposal to extend the grace period for the note from five working days to 30 trading days, with the maturity date set for January 28, 2026. No penalty would be charged during the grace period and the principal would continue to accrue interest at the coupon rate, according to the proposal.