Vanke secured Rmb20bn in syndicated loans

Cash-strapped Chinese property giant Vanke has signed deals with leading financial institutions such as China Merchants Bank to secure 20 billion yuan ($3.8 billion) in syndicated loans. This is the largest single loan for real estate in China since 2020.

The loan, secured by Vanke's Wanwei Logistics unit, has received 10 billion yuan so far, the Securities Times and First Financial News reported on Thursday.

Vanke responded that the 20 billion syndicated loan will help the company further improve liquidity, reflecting the strong support of financial institutions such as China Merchants Bank to the company; The company has maintained a good relationship of cooperation and trust with financial institutions, and all kinds of financing cooperation are actively promoted.

Vanke also said that it will continue to act firmly, and has the confidence and ability to take the initiative and complete the transformation of the financing model in a comprehensive and systematic way while properly dealing with maturing debts.

Industry insiders said that due to the large amount of syndicated financing and the need for joint recognition by several banks, the borrower qualification requirements are very high. In addition, the current real estate policy has shown significant benefits, and Vanke has obtained significant financing progress, which also has significant boosting significance for industry confidence.

Vanke has secured loans from a number of banks. Vanke announced on May 13 that it had applied for a total of 7.339 billion yuan in loans from the Bank of China, Agricultural Bank of China and Bank of Beijing. Vanke received another 1.2 billion yuan loan from the Bank of China on May 20.