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. acted as conveners to release the summary of proposals for the first bondholders' meeting in 2026 regarding Vanke's 2022 fourth phase &#34;22 Vanke MTN004&#34; and fifth phase &#34;22 Vanke MTN005&#34; medium-term notes, with a total scale of 5.7 billion yuan.
This time, the bondholders' meetings for both bonds have re-established four special proposals, including principal extension, grace period extension, partial early redemption of principal and interest, and provision of credit enhancement measures. All proposals must be approved by holders with more than 90% of voting rights to take effect, with the voting deadline set for January 26, 2026.
Public information shows that the &#34;22 Vanke MTN004&#34; bond has a remaining balance of 2 billion yuan, a coupon rate of 3.00%, an original maturity date of December 15, 2025, and interest payable of 60 million yuan; the &#34;22 Vanke MTN005&#34; bond has a remaining balance of 3.7 billion yuan, also with a coupon rate of 3.00%, an original maturity date of December 28, 2025, and interest payable of 111 million yuan. Both bonds are seeking an extension of repayment.
According to the latest disclosed proposals, both bond proposals aim to adjust the repayment arrangements for the medium-term notes' principal and interest. The proposal suggests adjustments to the principal and interest repayment of the two medium-term notes, while providing the project company's receivables pledge as credit enhancement.
Among them, the &#34;22 Vanke MTN004&#34; bond intends to extend the principal repayment date by 12 months to December 15, 2026; the &#34;22 Vanke MTN005&#34; will be extended to December 28, 2026, with the coupon rate remaining unchanged at 3.00% during the extension period, and additional interest to be paid together with the principal.
Regarding unpaid interest, the 60 million yuan for &#34;22 Vanke MTN004&#34; must be paid before January 28, 2026, and the 111 million yuan for &#34;22 Vanke MTN005&#34; must be paid before February 10, 2026. The unpaid principal during the grace period will accrue interest at 3.00%, and unpaid interest will not accrue compound interest.
As a credit enhancement guarantee, Vanke promises to use the receivables of its project companies as collateral. Among them, &#34;22 Vanke MTN004&#34; involves three companies: Shenzhen Rongxing Real Estate Development Co., Ltd., Langfang Wanheng Shengye Real Estate Development Co., Ltd., and Beijing Youtai Real Estate Development Co., Ltd.; &#34;22 Vanke MTN005&#34; 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 working days after the proposal is approved, otherwise creditors may declare the principal and interest due immediately.
Both proposals aim to extend the grace period for the medium-term notes. The proposal intends to extend the grace period for the principal and interest repayment dates of the two notes from 30 trading days to 90 trading days
Among them, the grace period for &#34;22 Vanke MTN004&#34; will expire on April 29, 2026; the grace period for &#34;22 Vanke MTN005&#34; has been extended to May 14, 2026. According to the proposal, if Vanke fully repays, eliminates the default event, or obtains a waiver from the bondholders' meeting during the grace period, it will not constitute a default, and no penalty interest, default fees, or overdue interest will be imposed during the grace period. The unpaid principal will continue to accrue interest at the coupon rate during the grace period, and the actual payment will include the accrued interest, with no additional interest on the unpaid interest.
Proposal three mainly proposes fixed repayment and adjustment of principal and interest repayment, while providing credit enhancement measures and repayment order commitments. Among them, the fixed repayment arrangement is clear: if this proposal is approved, for the bondholder accounts that participate in the bondholders' meeting and agree to proposal three or proposal four, Vanke will implement a repayment of 100,000 yuan on January 28, 2026, and the principal portion will not accrue interest from the original repayment date to January 28, 2026; if the principal balance of the bondholder account changes compared to the creditor registration date, this arrangement will apply based on the lower amount.
On this basis, the principal repayment and payment arrangements are also adjusted. For &#34;22 Vanke MTN004,&#34; 40% of the principal (after deducting the fixed repayment portion) will be repaid on January 28, 2026, and the remaining 60% will be extended to December 15, 2026; for &#34;22 Vanke MTN005,&#34; the same proportion will be repaid on January 28, 2026, and the remaining 60% principal will be extended to December 28, 2026. Unpaid interest and interest on the 40% principal will be paid within January 28, and the interest rate on the extended portion will remain at 3.00%.
In addition, the credit enhancement measures will remain consistent with proposal one. At the same time, Vanke commits that in subsequent domestic public market credit bond repayments, it will prioritize repayment according to the original maturity date of the bonds, ensuring that the repayment ratio of the medium-term notes is not worse than that of all bonds with later maturity dates.
Proposal four is to extend the grace period for the medium-term notes and the repayment of part of the principal and interest. This proposal suggests extending the original grace period of 30 trading days to 90 trading days, while setting up two repayment arrangements: one is fixed repayment, consistent with proposal three; the other is partial principal and interest repayment, where the interest payable on both bonds will be repaid on January 28, 2026, and 5% of the principal balance after deducting the fixed repayment will also be repaid on the same day, with this portion of the principal no longer accruing interest, and the unpaid principal during the grace period will accrue interest at 3.00%.
During the grace period, if Vanke fully repays or obtains a waiver during the grace period, it will not constitute a default. Vanke also commits to maintaining the priority of repayment order for this medium-term note, ensuring it is not worse than later-maturing credit bonds.
According to the announcement, the bondholders' meeting for &#34;22 Vanke MTN004&#34; will be held on January 21, 2026, at 10:00, and the bondholders' meeting for &#34;22 Vanke MTN005&#34; will be held on the same day at 15:00, with the voting deadline for the bondholders' meeting set for January 26
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02202

China Vanke Co., Ltd. announced a new extension plan for its two medium-term notes totaling 5.7 billion yuan. This plan includes principal extension, grace period extension, and credit enhancement measures, requiring the consent of over 90% of the bondholders. The bond "22 Vanke MTN004" is extended to December 15, 2026, and "22 Vanke MTN005" is extended to December 28, 2026, with a coupon rate maintained at 3.00%. Vanke will use the receivables of the project company as collateral for credit enhancement

Wallstreetcn

Vanke

CHINA VANKE

Vanke announced a new plan for the extension of two bonds totaling 5.7 billion yuan: providing collateral for accounts receivable of the project company to enhance credit, seeking to extend the grace period to 90 trading days