After China Vanke Co., Ltd. significantly improved the extension terms, its first bond received approval from holders for an extension, with part of the principal repayment delayed by one year. China Vanke Co., Ltd. announced on the Shenzhen Stock Exchange that 92.11% of holders voted in favor of the proposal to adjust the principal and interest repayment arrangement for the putable portion of the "21 Vanke 02" bond. Under this plan, 40% of the principal for the putable portion will be repaid on January 30, while the remaining 60% is proposed to be extended for one year, with repayment scheduled for January 22, 2027. According to data compiled by Bloomberg, the original put date for this bond was January 22. The approval of this extension plan implies that the extension proposals for two other medium-term notes are also likely to gain support. For this major property developer, which carries interest-bearing debt as high as $50 billion, this provides a breathing space to avoid default. According to a previous announcement, the voting deadline for the extension proposals of "22 Vanke MTN004" and "22 Vanke MTN005" is January 26. Vanke's previously announced put results for "21 Vanke 02" showed that over 1 billion yuan worth of bonds were put by holders, close to the entire outstanding amount of this bond. Since Vanke announced its intention to adjust the repayment arrangements for "21 Vanke 02" and the two medium-term notes, its onshore and offshore bonds have rebounded somewhat; two of its dollar bonds have risen back above 20 cents on the dollar after previously falling to around 15 cents, while some onshore corporate bonds have returned to levels close to 40 yuan. Overall, the prices of its onshore and offshore bonds remain at distressed levels, reflecting investors' ongoing concerns about its future debt repayment capacity, as more of Vanke's debt is due later this year. Shenzhen Metro Group, which has strongly supported Vanke's repayment of public market debt over the past two years, tightened its loan terms to Vanke after the developer's losses widened further in the third quarter, after which Vanke's debt crisis deteriorated rapidly. According to people familiar with the matter, Vanke recently received official instructions requiring the company to clarify its debt situation as soon as possible and promptly formulate a restructuring plan. The improved terms of Vanke's bond repayment plan came as a surprise to creditors, and some holders contacted Vanke to verify whether these cash repayment proposals were indeed put forward by the company, according to sources. Vanke told some bondholders in private conversations that if creditors approved the improved plan, the company would be able to make the repayments as outlined.
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