Vanke seeks an extension for another publicly issued bond: the remaining balance is 20 billion yuan, and the original repayment date was April 23

Vanke seeks an extension for yet another publicly issued bond.

On April 3, the website of the National Association of Financial Market Institutional Investors under the National Interbank Funding Center showed that Bank of Communications Co., Ltd., acting as convener, issued an announcement on convening the first meeting of bondholders for Vanke Enterprise Co., Ltd.’s 2023 annual first tranche of medium-term notes (abbreviated as “23 Vanke MTN001”) for the year 2026.

The 23 Vanke MTN001 involved in this meeting has an original principal repayment date of April 23, 2026, with an outstanding bond amount of 2.0 billion yuan, an interest-bearing coupon rate of 3.11% per annum during the interest accrual period, and Bank of Communications Co., Ltd. as the issue and ongoing management institution.

The announcement states that, in order to prudently carry out the payment of principal and interest under this bond, a meeting of bondholders will be convened to review the matters related to the extension of this bond; the meeting will be held on April 17, 2026 at 10:00.

Pursuant to the meeting agenda procedures, the convener, Bank of Communications, will, before April 8, 2026, send the meeting proposals through the ongoing-issuance services system, by email, by fax, or by other means, or disclose the meeting proposals. The issuer and bondholders that individually or collectively hold more than 10% of the outstanding balances of the same-period debt financing instruments may, before April 10, 2026 at 23:59, submit supplementary proposals to the convener through the ongoing-issuance services system or in other written forms. The convener will, before April 14, 2026, send the final proposals through the ongoing-issuance services system, by email, by fax, or by other means, or disclose the final proposals.

As arranged, bondholders should submit their voting receipts through the ongoing-issuance services system before April 20, 2026 at 17:00, or send the voting receipts to the convener.

This is the first bond Vanke has sought to extend since the Spring Festival this year. Looking back at Vanke’s prior debt restructuring and disposition, it began seeking extensions of bonds starting in November last year, and in January this year, several public bond extensions’ voting were already completed. Of these, two medium-term note tranches totaling 5.7 billion yuan (the “22 Vanke MTN004” and the “22 Vanke MTN005”) had their extension proposal approved by creditors. Vanke, while implementing fixed repayments of no more than 100k yuan, adjusted the principal repayment and payment arrangements: it repaid 40% of the principal of the medium-term notes first, while the remaining 60% obtained a one-year extension. In addition, a proposal to adjust the repayment of principal and interest on the call-back portion of the “21 Vanke 02” bonds, involving 1.1 billion yuan, was also approved as valid earlier.

Regarding the progress in mitigating and resolving risks that the market is focusing on and the strategy to respond to subsequent risk resolution, on March 31 this year, when replying to investors’ questions, Vanke’s management said that since 2025, the company has fully carried out self-rescue. With support from various parties, especially its major shareholders, it has solidly advanced risk mitigation and resolution work. As of now, it has completed the repayment of maturing bonds totaling 33.2 billion yuan and maintained overall stability of existing debt. In January 2026, under certain repayment arrangements, it achieved extensions for three publicly issued bonds that were nearing maturity. However, due to multiple internal and external factors, the company’s current operating situation remains extremely severe. Vanke frankly stated that historically, when major changes occurred in the supply-and-demand relationship in the real estate market, the company failed to promptly break away from the expansion inertia of high leverage, high turnover, and high debt, resulting in issues such as dispersed investment and development plans, excessive expansion into multiple tracks, and a high dependence on headquarters financing, all of which have brought enormous challenges to the current risk mitigation and resolution efforts.

Based on the data disclosed by Vanke, in 2026 Vanke still faces publicly issued bonds maturing in total of 14.68 billion yuan, of which 11.27 billion yuan matures in a concentrated window from April to July, making repayment pressure particularly prominent.

Vanke’s management said the company will adhere to a candid and pragmatic approach, maintain close communication and negotiations with creditors, and seek solutions for the long-term resolution of debt in a proactive manner, with the goal of protecting the long-term interests of all parties and in light of the company’s actual operating conditions. The company also sincerely asks all parties to continue to provide understanding, support, and tolerance, and to move in the same direction as the company, giving the company time and space to resolve risks.

In addition, according to the annual report data disclosed by Vanke on March 31, in 2025 it achieved operating revenue of 233.43 billion yuan, down 32.0% year over year; net losses attributable to shareholders of listed companies were 88.56 billion yuan; and basic loss per share was 7.45 yuan, down 78.4% year over year.

For the large loss during the full year, Vanke explained in its annual report that the loss amount was further expanded compared with 2024, mainly due to the combined impact of multiple factors, including certain high-land-price projects entering the settlement period, additional provisions for inventory price declines, and credit impairment. Vanke said that the loss was influenced not only by external factors, but also by internal factors such as prior management and operational missteps. The company’s management has continued to optimize management, reduce costs and increase efficiency, and intensify efforts on compliance building. However, it will still take time to resolve the burdens and problems formed by the prior development model of “high debt, high turnover, and high leverage.”

By Caixin reporter Ji Simin

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