China Vanke Co., Ltd. announced that, after trading hours on 12 June 2026, it executed a loan agreement with its 27.18% shareholder Shenzhen Metro Group Co., Ltd.
The facility provides up to RMB1.14 billion for a term of no more than three years. Drawdowns must occur by 30 July 2026, and no funds have been drawn to date.
Pricing is set at the floating one-year Loan Prime Rate minus 71 basis points. Based on the current LPR, the rate stands at 2.29%, below the prevailing benchmark, reflecting terms described by the board as normal commercial or better. Interest is calculated daily and settled quarterly, with any outstanding amount due at maturity.
Proceeds will be applied to repay principal and interest on China Vanke’s outstanding on-market bonds and other designated debts. Repayment sources include collections of the pledged accounts receivable; any receipts must be reported to Shenzhen Metro Group the same day, and excess funds beyond approved working-capital needs must be used to prepay the loan within one calendar day of notice.
To secure the facility, China Vanke will pledge accounts receivable valued at RMB1.14 billion, establishing a 100% loan-to-value ratio. Should receivable collections prove insufficient, the borrower must provide additional collateral acceptable to the lender.
The transaction was approved at the 35th meeting of China Vanke’s twentieth-session board. Interested directors Mr. Huang Liping and Mr. Lei Jiangsong abstained from voting.
Under Hong Kong Listing Rules, Shenzhen Metro Group’s 27.18% stake classifies it as a connected person. Because all applicable percentage ratios for the transaction exceed 0.1% but remain below 5%, the deal is subject only to reporting and announcement requirements and is exempt from circular, independent financial advice, and independent shareholder approval.
The board stated that the loan offers cost-effective funding, strengthens liquidity for near-term bond servicing, and aligns with the interests of both the company and its shareholders.
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