Repayment pressure has been substantially deferred until after the Lunar New Year.
Following the initial rejection of its first proposal, China Vanke Co., Ltd. (Vanke) saw its second attempt to extend medium-term notes also fail.
On December 22, the voting results of the second bondholder meeting for "22 Vanke MTNO04" were announced. The meeting reviewed three proposals: procedural simplification, the extension plan, and an extended grace period.
The core proposal was "Proposal Two," which sought to extend the principal repayment by one year to December 15, 2026, with Vanke providing additional credit enhancement measures. Vanke also committed to paying the RMB 60 million interest due on December 15 before December 22, maintaining the original interest rate during the extension, with accrued interest to be settled alongside the deferred principal.
The voting results showed only 20.20% approval for the proposal, while 78.30% opposed it, rendering the proposal ineffective. This marks another rejection of Vanke's medium-term note extension plan.
"Proposal Three," which requested an extended grace period, passed with 90.7% approval and only 8.3% opposition. The proposal significantly lengthened the grace period from just five business days to 30 trading days, pushing the deadline to January 28, 2026. This grants the medium-term note, due within the year, a buffer of over one month, effectively postponing repayment pressure until after the Lunar New Year.
Vanke stated that it accepts the voting results and will engage in transparent discussions with stakeholders to refine solutions and continue seeking resolutions for the bond, safeguarding long-term mutual interests. To protect bondholders' rights, Vanke made the following commitments:
1. After the grace period extension, the repayment priority of this medium-term note will not be lower than any bonds maturing after it (i.e., bonds due after December 15, 2025, referred to as "subsequent bonds"). 2. Before settling the outstanding principal and interest of this note, Vanke will not repay the principal of any subsequent bonds.
The grace period extension only adjusts the repayment timeline of this medium-term note and does not alter its original repayment sequence as of December 15, 2025. If Vanke repays subsequent bonds without authorization, the unpaid principal and interest of this note will become immediately due.
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